Tupperware Brands Corporation

Tupperware Brands Corporation (NYSE: TUP) is a global consumer products company. It is engaged in marketing, manufacturing, and selling design-centric preparation, storage, and serving solutions for the kitchen and home through the Tupperware brand name. It is primarily designing functional products to help store, serve, and prepare food.

Recent Financial and Business Updates:

• Summary of Preliminary Full Year 2022 Financial Results for TUP:
  • Net sales amounted to USD 1,305.6 million, representing an 18% year-over-year decrease (or 14% on a constant currency basis).
  • Gross profit stood at USD 836.4 million, accounting for 64.1% of net sales.
  • The company incurred a loss of USD 28.4 million from continuing operations.
  • Diluted (loss) earnings per share from continuing operations were reported as USD $(0.62).
  • Adjusted diluted (loss) earnings per share (non-GAAP) from continuing operations were recorded as USD $0.46.
  • Adjusted EBITDA (non-GAAP) from continuing operations reached USD $124.0 million.
  • The Consolidated Net Leverage Ratio, as of December 31, 2022, was 4.88x.
• Summary of Preliminary Fourth Quarter 2022 Financial Results for TUP:
  • Net sales for the fourth quarter amounted to USD 313.7 million, showing a 20% year-over-year decrease (or 14% on a constant currency basis).
  • Gross profit stood at USD 196.5 million, representing 62.6% of net sales.
  • The company incurred a loss of USD 35.2 million from continuing operations during the fourth quarter.
  • Diluted (loss) earnings per share from continuing operations were reported as USD (0.79).
  • Adjusted diluted (loss) earnings per share (non-GAAP) from continuing operations were recorded as USD (0.24).
  • Adjusted EBITDA (non-GAAP) from continuing operations reached USD 24.4 million.
  • The company's total debt at the end of 2022 was USD 705.4 million, slightly lower than the amount at the end of 2021, which was USD 709.4 million.

Technical Observation (on the daily chart)

Currently, the stock is currently near an important resistance level of USD 5.50-USD 6.50, from where price has taken resistance in the past. A correction from the current level is expected before a move towards upside. The RSI (14 period) momentum indicator is at an overbought value of 71.35, with expectations of further consolidation or a short-term correction. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

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Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 04, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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