TSC Ratings' Updates: Tupperware

We've downgraded St. Joe(JOE Quote), which operates as a real estate development company in Florida, from hold to sell, driven by its feeble growth in its earnings per share, deteriorating net income and decline in the stock price during the past year.

St. Joe has experienced a steep decline in earnings per share in the most recent quarter in comparison with its performance from the same quarter a year ago. Earnings per share have declined over the last two years, and we anticipate that this should continue in the coming year. During the past fiscal year, St. Joe reported lower earnings of 14 cents vs. 20 cents in the prior year. For the next year, the market is expecting a contraction of 178.6% in earnings to -11 cents. Net income has significantly decreased by 182% when compared with the same quarter a year ago, falling from -$6.81 million to -$19.20 million and underperforming both the S&P 500 and the real estate management and development industry.

Revenue plummeted by 57.6% since the same quarter one year ago, underperforming the industry average of 33.5%. EPS also decreased. On the basis of return on equity, St. Joe. Underperformed the industry average and the S&P 500. Shares are down 18.4% on the year, reflecting the market's overall decline (which was actually deeper) and the decline in the company's EPS. The fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.