Why Tupperware Stock Got Demolished Today
Shares of Tupperware (NYSE: TUP) have gotten demolished today, down by 31% as of noon EDT, after the maker of food storage, kitchen products, and beauty accessories reported third-quarter earnings results. Investors were dismayed by falling profits and a reduction in full-year guidance.
Revenue in the third quarter declined to $418.1 million, missing the consensus estimate of $426.6 million. That translated into adjusted net income of $21.1 million, or $0.43 per share, well below the $0.62 per share in adjusted profits that analysts were expecting. The company said the bottom line took a hit from an impairment charge for indefinite-lived intangible assets, which was related to increased reserves for accounts receivables and inventories. Tupperware is coping with lower collections and higher sales returns.
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Source Fool.com
