J.P Morgan: Tupperware Delivers Strong Quarterly Results, Raises Guidance

Tupperware TUP delivered a strong Q4 and issued better than expected EPS outlook for 2011. J.P Morgan thinks the company's Q4 sales performance underscores their ability to deliver on their long-term +6-8% target. TUP is one of the few companies in J.P Morgan's coverage universe to deliver better top-line results in Q4, which is impressive, and it believes their performance will end up at the high end of the peer group. TUP continued to benefit from their significant exposure to the emerging markets, as they resumed double-digit growth, rising 14%, after growing 9% in Q3. The 2 year trend improved as well. Although LC top line in the established markets was down for the third straight quarter, the two-year stacked trend improved. TUP is forecasting 2011 ongoing EPS of $4.23-4.33 vs. consensus of $4.15. They are budgeting for top line growth of 8-10%, with LC sales up 6-8% and fx benefit of 2%. An extra week will also add about 2% to top line. TUP will repurchase $160 MM incremental shares, so that diluted shares outstanding should be down 2-2.5%. J.P Morgan has a $57 PT and Overweight rating on TUP TUP closed Monday at $52.60