Tupperware Shares Up On Higher Profit, Outlook

SAN FRANCISCO (AP) — Shares of Tupperware Brands Corp. jumped on Wednesday, a day after it said that its third-quarter profit rose and it raised its full-year earnings estimate.

Tupperware — a direct seller of plastic containers and beauty products — also beat a consensus estimate from Wall Street.

Shares of the Orlando, Fla.-based company rose $4.36, or 9.9 percent, to $48.37 in midday trading Wednesday.

Jefferies & Co. analyst Douglas Lane said sales results were better than expected and the negative impact of foreign currency translations was less hurtful than anticipated.

Morgan Stanley analyst Dara Mohsenian kept an "Overweight" rating on the stock and raised a price target to $63 from $53.

"Strong Q3 earnings per share confirms our belief that consensus is too low in 2010," Mohsenian told investors in a research report. Analysts polled by Thomson Reuters expect $3.44 per share in 2010.

Mohsenian said the market is underestimating the company's operating leverage and margin growth that would be driven by higher sales.