Container-meister Tupperware (NYSE:TUP) has beaten consensus analyst estimates in each of the past nine quarters. On Monday, the company will release its Q4 and full-year 2005 earnings results and try to make it 10 for 10.

Wall Street Wisdom:

  • General consensus. Seven analysts follow Tupperware, and they've split their ratings pretty evenly between "buy" and "hold," although one analyst breaks ranks to issue a "sell" call.
  • Revenues. Analysts believe that Tupperware had a pretty good Q4, earnings-wise. The consensus is that the company upped sales by 10% against the year-ago quarter, to $394 million.
  • Earnings. Profits will be another story (unless, of course, Tupperware proves the analysts wrong once more). Expectations call for earnings of $0.54 versus the $0.64 per share earned in Q4 2004.

Margin watch:
Despite rising raw-material and energy costs, Tupperware has done a fine job of maintaining its gross margins over the past 18 months. Even better, the company has mostly been able to keep its operating margins rising despite operational efficiencies -- although its net is starting to show signs of flagging.

Margins %

6/04

9/04

12/04

4/05

7/05

10/05

Gross

64.6

64.7

65.3

65.1

65.0

64.7

Op.

8.4

9.0

9.0

10.2

10.3

10.0

Net

5.4

6.4

7.1

7.7

7.9

7.1
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ending in the named months.

Foolish lookout:
In December, in a mild earnings warning for Q4 2005, Tupperware dialed back its expected net earnings for the year (and, since there was just one quarter remaining in it, for Q4 as well) by $0.06 per share. However, the company also noted that negotiations with former parent company Sara Lee (NYSE:SLE) could yield a "significant" tax benefit some time between last December and Q1 2006. That probably won't prevent the expected decline in earnings for Q4 -- but if good news is reported on this front tomorrow, it could result in raised guidance for next quarter and a consequent boost to the stock price on Monday.

Competitors:
In related news, Tupperware's arch-rival, Newell Rubbermaid (NYSE:NWL), reported earnings yesterday. Sales rose just 1% over the year-ago period, but the company still managed to beat analyst estimates by a nickel. Result: Newell shares shed 2% of their value. Go figure.

Fool contributorRich Smithdoes not own shares of any company named above. Tupperware, Sara Lee, and Newell Rubbermaid areMotley Fool Income Investorpicks. The Fool has a disclosure policy.