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Tupperware Brands Declares Dividend of $0.68 per Share

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Price movement

Tupperware Brands (TUP) has a market cap of $3.3 billion. It fell by 0.38% to close at $64.89 per share on August 17, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 1.8%, 11.7%, and 19.5%, respectively, on the same day. TUP is trading 2.6% above its 20-day moving average, 9.5% above its 50-day moving average, and 18.0% above its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap Value ETF (VBR) invests 0.16% of its holdings in Tupperware. The ETF aims to track the CRSP US Small Cap Value Index. The index selects from a list of stocks in the 85%-99% market cap range based on five value factors. The YTD price movement of VBR was 12.4% on August 17.

The market caps of Tupperware’s competitors are as follows:

  • Newell Brands (NWL): $25.8 billion
  • Fortune Brands Home & Security (FBHS): $9.6 billion
  • Nu Skin Enterprises (NUS): $3.3 billion

Tupperware declared dividend

Tupperware Brands has declared a regular quarterly dividend of $0.68 per share on its common stock. The dividend will be paid on October 3, 2016, to shareholders of record as of September 20, 2016.

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Performance of Tupperware Brands in fiscal 2Q16

Tupperware Brands reported fiscal 2Q16 net sales of $564.7 million, a fall of 4.1% compared to net sales of $588.9 million in fiscal 2Q15. Net sales of the Europe, Beauty North America, and TW North America segments fell by 12.6%, 19.0%, and 0.75%, respectively.

Net sales of the South America and Asia segments rose by 7.7% and 1.5%, respectively, in fiscal 2Q16 compared to the prior-year period. The company’s gross profit margin and operating income fell by 0.67% and 17.7%, respectively, in fiscal 2Q16 compared to fiscal 2Q15.

Its net income and EPS (earnings per share) fell to $52.4 million and $1.03, respectively, in fiscal 2Q16 compared to $62.0 million and $1.23, respectively, in fiscal 2Q15.

Tupperware Brands’ cash and cash equivalents fell by 1.0% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio rose to 0.93x, and its long-term debt-to-equity ratio fell to 3.4x in fiscal 2Q16. That compares to a current ratio and long-term debt-to-equity ratio of 0.90x and 3.8x, respectively, in fiscal 4Q15.

Projections

Tupperware Brands has made the following projections for fiscal 3Q16:

  • US dollar sales growth of 1%–3%
  • EPS of $0.94–$0.99
  • local currency sales growth of 2%–4%

The company has made the following projections for fiscal 2016:

  • US dollar sales growth of -2% to -1%
  • EPS of $4.18–$4.28
  • local currency sales growth of 3%–4%
  • tax rate of ~26.8% on a US GAAP (generally accepted accounting principles) basis

In the next part, we’ll take a look at WhiteWave Foods.

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