ORLANDO, Fla. (AP) -- Tupperware Brands Corp. said Wednesday its net income rose 8 percent in the second quarter on strong growth in emerging markets in South America and Asia.
The results beat expectations, and the company's shares rose 3.4 percent in morning trading, even though the company cut its full-year outlook.
The direct seller of plastic storage containers and personal care products has sought to improve results by offering new products and adjusting prices in some regions. It has also reduced staff in certain areas and relocated operations in several countries. Strength in emerging markets has helped offset slowness in developed markets including North America.
Net income for the three months ended June 29 rose to $76.3 million, or $1.43 per share. That compares with $12.7 million, or 22 cents per share, last year. Excluding one-time items, earnings were $1.46 per share. Analysts expected $1.44, according to FactSet.
Revenue rose 8 percent to $688.4 million to $638.9 million last year. Analysts expected $678 million. Revenue rose 14 percent, excluding currency fluctuations, in emerging markets, which account for 65 percent of Tupperware's sales.
Revenue in established markets like the U.S., fell 1 percent.
Looking forward, Tupperware, based in Orlando, Fla., expects earnings of 99 cents to $1.04 cents per share, excluding one-time items, with revenue up 3 percent to 5 percent, implying revenue of $612.2 million to $624.1 million. Analysts expect $1.08 per share on revenue of $630.7 million.
For the year, the company expects net income of $5.44 to $5.54 per share, excluding one-time items, on revenue up 4 percent to 5 percent, implying revenue of $2.68 billion to $2.71 billion. Analysts expect on net income of $5.59 on revenue of $2.7 billion. That's down from the company's previous outlook for earnings of $5.52 to $5.67 per share, with revenue up 5 percent to 7 percent. The company said the revision was due to current business trends and currency fluctuation.
Shares rose $2.68, or 3.4 percent, to $82.66 midday trading. The stock has traded between $50.90 and $83.89 over the past 52 weeks.
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