The firm also lowered its earnings estimates for Tupperware to $5.18 per share from $5.25 per share for 2014. For fiscal 2015 BMO reduced its earnings forecast to $5 from $5.25 per share, and for 2016 the firm lowered its estimates to $5.35 from $5.60 per share.
BMO said it reduced its numbers on the household storage, serving, and preparations solutions provider based on "continued weakness in important currencies since our December 4 downgrade and the 31% increase in the price of gasoline in Indonesia, partially offset by early signs of declining resin prices."
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Separately, TheStreet Ratings team rates TUPPERWARE BRANDS CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TUPPERWARE BRANDS CORP (TUP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TUPPERWARE BRANDS CORP's earnings per share declined by 33.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TUPPERWARE BRANDS CORP increased its bottom line by earning $5.18 versus $3.43 in the prior year. This year, the market expects an improvement in earnings ($5.24 versus $5.18).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has significantly decreased by 35.4% when compared to the same quarter one year ago, falling from $50.00 million to $32.30 million.
- The debt-to-equity ratio is very high at 3.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.42, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full analysis from the report here: TUP Ratings Report