Tupperware Brands (TUP) - Get Tupperware Brands Corporation Report shares plunged Wednesday after the storied food-storage container company reported adjusted earnings that badly trailed analysts’ forecasts.
The stock recently traded at $25.75, down 20.52%. It remains up an astounding 1,040% over the past 12 months, however, as the COVID pandemic has meant increased spending at grocery stores and cooking at home, which has meant more food to store.
Net income for the fiscal fourth quarter ended Dec. 26 registered $21.8 million, or 41 cents a share, swinging from a loss of $71.7 million, or $1.47 a share, in the same period a year ago.
Adjusted profit was 14 cents a share, reversing a loss of 63 cents last year, but far below the FactSet analyst consensus of 71 cents.
Revenue jumped 17.4% to $489.6 million in the quarter, ahead of the analyst consensus of $449.0 million.
Not surprisingly, Tupperware officials emphasized the positive. "The results reported today show that our efforts to fix the core business are beginning to take hold, as our sales force realize geography is no longer a barrier to reach new customers as they grow their business through social media platforms and digital tools,” said Chief Executive Miguel Fernandez.
Further, “In 2020 we dramatically right-sized our cost structure, improved our cash flow from operations, and refinanced our debt," said Sandra Harris, Tupperware’s chief financial officer and chief operating officer.
In December, writers and editors for TheStreet, RealMoney and Action Alerts Plus chose Tupperware as the 21st best stock of 2020. The “legendary brand name … cut costs and handily beat estimates the past two quarters,” they wrote.