Shares of Tupperware Brands Corp. shot up 9.9% in premarket trading Wednesday, after food storage products company reported a third-quarter profit and sales that rose well above expectations, as more consumers cook at home and store leftovers amid the COVID-19 pandemic. Net income rose to $34.4 million, or 65 cents a share, from $7.8 million, or 16 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share increased to $1.20 from $36 cents, compared with the FactSet consensus of 37 cents. Sales rose 14% to $477.2 million, beating the FactSet consensus of $362.8 million. North America sales surged 42%, Europe sales grew 23% and South America sales increased 4%, while Asia Pacific sales fell 6%. The company said it remains in compliance with its financial covenants. Tupperware Chief Executive Miguel Fernandez said the revenue growth reflects a “rapid adoption of digital tools by our sales force to combat the social restrictions surrounding COVID-19, and the increased consumer demand for our innovative and environmentally friendly products, as more consumers cook at home and are concerned with food safety and storage.” The stock has more than doubled (up 121.4%) over the past three months through Tuesday, while the S&P 500 has gained 5.4%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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