Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, April 13, 2018

Article Excerpt

TUPPERWARE BRANDS CORP., $41.71, New York symbol TUP, makes household goods such as plastic containers for food, beverages, cosmetics and fragrances. It sells these products through 3.2 million independent dealers. That network keeps its distribution costs down. The stock fell 12% this week after Tupperware cut its earnings outlook for the first quarter of 2018. It now expects to report earnings before unusual items of $0.87 per share to $0.92 per share. That’s down from its earlier forecast of $1.01 to $1.06. The decline is due to several factors: the closure of a plant in France, which disrupted sales in that country as well as Germany; lower-than-expected sales in Indonesia; lower sales in Brazil due to supply problems and quality control issues that hurt supply; and a bigger-than-expected negative impact from recent changes to the U.S. tax code. Most of these are temporary problems that the company is now addressing. As well, an ongoing restructuring plan will lower its future operating costs. Moreover,…