Tupperware sells beauty business

Article Excerpt

TUPPERWARE BRANDS CORP. $64 (New York symbol TUP; Income Portfolio, Consumer sector; Shares outstanding: 50.9 million; Market cap: $3.3 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.tupperwarebrands. com) 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. Tupperware will now sell its money-losing Beauticontrol business to Youngevity International Inc. (Nasdaq symbol YGYI). That operation sells cosmetics and personal-care products. The company has yet to reveal the selling price. However, it will continue to earn royalties on future sales of Beauticontrol products. Tupperware also continues to make progress with its plan to improve efficiency. That should help it offset rising costs for plastic resin. Excluding unusual items, the company expects its earnings to rise from $4.75 a share in 2017 to $5.16 for 2018. The stock trades at 12.4 times that 2018 estimate. The $2.72 dividend yields a high 4.3%. Tupperware is…