Tupperware Brands (TUP): Zacks Rank Buy

• By Alex Kolb
• On 1:00 am EDT, Friday October 23, 2009

Tupperware Brands Corporation (TUP) recently reported third-quarter earnings of 54 cents per share, topping the Zacks Consensus Estimate by 29% and surpassing the previous year's 47 cents. Sales were up 9% in local currency. The company also declared a dividend of 25 cents, representing a 14% boost.

Company Description

Tupperware Brands Corporation is a global direct seller of premium, innovative products across multiple brands and categories through an independent sales force of over 2 million.

Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand as well as beauty and personal care products through its Avroy Shlain, BeautiControl, Fulller, NaturCare, Nutrimetrics, and Nuvo brands.

A Stellar Third Quarter

The company recently reported third-quarter earnings of 54 cents per share, topping the Zacks Consensus Estimate by 29% and surpassing the previous year's 47 cents. Sales were up 9% in local currency.

The company also declared a dividend of 25 cents, representing a 14% boost. Tupperware stated that the dividend is payable on January 4 to shareholders of record on December 4.

The company pays an industry-leading dividend yield of 2%.

Bullish Forecasts

Tupperware noted that it sees fourth-quarter earnings ranging between 98 cents and $1.03 per share. Analysts polled by Zacks are in agreement, calling for earnings of $1.02 per share, a penny above last week's estimate and 8 cents higher than last month's projection.

For the full year, Tupperware issued a guidance of $2.84 to $2.89 per share. The Zacks Consensus Estimate stands at $2.90 per share, up from last week's $2.72 and last month's $2.66.

Favorable Industry Comparisons and Strong Momentum

The company offers a return on equity of 33%, soaring past the industry average of 7.5%. TUP's net profit margin of 7.5% compares favorably to a negative industry average.

Shares soared on the robust quarterly report and surged 100% past the S&P 500 over the past year.

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