As Tupperware Brands Corp. (TUP—NYSE) released its third quarter 2014 earnings Wednesday, shares dropped in reaction to the company’s lower than expected 2014 outlook. Tupperware traded 10 percent lower at $64.23 per share. Year to date, shares have fallen 24 percent.
With reported earnings of 90 cents per share, the company missed Wall Street estimates by 1 cent. This adjusted diluted EPS of 90 cents included a 14 cent negative impact versus 2013 from changes in foreign exchange rates, which were 2 cents below July’s guidance. Analysts surveyed by Zacks Investment Research had estimated earnings of 91 cents for the quarter.
Revenue fell 2.4 percent year over year to $588.7 million, compared to the $587.9 million consensus. The company also issued a lower guidance for fourth quarter with an EPS of $1.55 to $1.60 versus $1.70. Third quarter 2014 net sales in emerging markets accounted for 70 percent of sales, achieving an 8 percent increase in local currency. Established markets were down 4 percent in local currency.
GAAP net income of $32.3 million was down 35 percent versus prior year GAAP net income of $49.9 million. Excluding foreign currency, net income was down 24 percent versus prior year.