The 10-second takeaway
For the quarter ended June 29 (Q2), Tupperware Brands beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins grew.
Tupperware Brands chalked up revenue of $688.4 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $677.8 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $638.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.46. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.43 per share. Non-GAAP EPS of $1.46 for Q2 were 11% higher than the prior-year quarter's $1.31 per share. GAAP EPS of $1.43 for Q2 were much higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.2%, 40 basis points worse than the prior-year quarter. Operating margin was 16.4%, 20 basis points better than the prior-year quarter. Net margin was 11.1%, 910 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $628.8 million. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $2.70 billion. The average EPS estimate is $5.58.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 406 members out of 422 rating the stock outperform, and 16 members rating it underperform. Among 134 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 130 give Tupperware Brands a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tupperware Brands is outperform, with an average price target of $85.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Tupperware Brands. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.