Growth & Income: Tupperware Brands

Tupperware Brands (TUP ) has beaten the Zacks Consensus Estimate in each of the last five quarters by an average of 28.4%.

Growth and Income

The company is expected to grow its earnings per share 23% in 2010, 13% in 2011, and 12% per year for the long term. The stock also offers investors a nice dividend yield of 2.1%.

Despite its strong growth prospects, TUP shares are not trading at excessive P/E multiples.

This Zacks #1 Rank stock trades at 12.6x 2010 consensus EPS estimates and 11.1x 2011 consensus EPS estimates.

Business

Tupperware operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company makes and sells kitchen and home products, and beauty and personal care products.

According to Tupperware, over the last decade, the dominant number of new, direct-selling companies are multi-level marketing companies. The company has said that it has no interest in acquiring those businesses because they would "dumb-down" Tupperware's sales organizations.

First-Quarter Results

On April 20, Tupperware reported record first-quarter results. Revenue increased to $557.1 million, up 20.4% (including a currency boost) from the year-ago quarter. The company's adjusted EPS was 76 cents. This was 16 cents above the high end of management's guidance and 14 cents ahead of the Zacks Consensus.

CEO Rick Goings commented,"Starting 2010 with strong first quarter sales and earnings growth reaffirms that we have the right strategic initiatives in place."

Outlook

For Q2, the company expects sales growth of 12%-14% (including currency translation) and adjusted EPS of $0.95-$1.00. For full-year 2010, the company expects sales growth of 8%-10% and EPS of $3.68-$3.78.

We note the company's full-year guidance range is up 27 cents from its previous guidance.

Estimates Trending Higher

After the company's better-than-expected Q1 report, analysts lifted their estimates for this year and next. The Zacks Consensus for 2010 is up 23 cents, or 6.5%, to $3.79, and the Zacks Consensus for 2011 is up 27 cents, or 6.8%, to $4.27.

The Chart

TUP shares have more than doubled in the last twelve months. But, in recent weeks, the stock has experienced an increase in volatility. After beating Q1 results, the stock gapped higher and hit a new 52-week high. The stock has since closed that gap and is now down about 13% from its highs.

http://www.tupperwarebrands.com/

http://www.google.com/finance?q=NYSE:TUP

http://www.reuters.com/finance/stocks/overview?symbol=TUP

http://www.reuters.com/finance/stocks/analyst?symbol=TUP