Diversification Benefits Direct Seller Tupperware

Tupperware (TUP) may still be best known for its parties to see and buy the latest food-storage containers. But today, it's become a force in the beauty and personal care products markets as well.

The innovator in direct selling also markets cosmetics and nutritionals through the Armand Dupree, Avroy Shlain, BeautiControl, Fuller Cosmetics and NaturCare brands. The company's sales force exceeds 2 million.

Moving beyond the kitchen has been a smart move.

Sales grew 14%, 19% and 15% vs. year-ago levels in the first three quarters of 2011. Those gains exceed the 2%-to-8% increases seen in the prior three quarters.

Recent increases to the bottom line were even stronger. Earnings per share jumped 18%, 34% and 30% in the first three quarters of 2011, respectively.

The company paid 30 cents a share to shareholders on Jan. 4. The annual yield is 1.9%.

Tupperware will announce Q4 results before the market open Wednesday. Earnings are seen rising 11% to $1.53 a share on a 5% lift in sales to $689.5 million, according to Yahoo Finance.

The stock added 8% last week in accelerating weekly volume following a 4% rally the prior week. The strong gains hoisted Tupperware back above its key 200-day moving average. It still needs plenty of work on the right side of its long cuplike base, though. The high in the base is 71.99.

Next week holds another big slate of quarterly earnings reports.

Tyco International (TYC) reports Q4 results on Tuesday. The maker of security systems, fire protection products and steel tubing is up 1% since clearing a 48.62 cup-with-handle buy point. It sports a 2% yield and an 11 earnings stability factor on a 1-100 scale, with 1 the best.

Qualcomm (QCOM), the wireless technology giant, announces Q4 results on Wednesday. It has a 97 Composite Rating, a 1.5% yield, and an 8 stability factor. Earnings are seen rising 10% to 90 cents a share.

Minneapolis-based electric and natural gas utility Xcel Energy (XEL), which finished the week up more than 1%, is expected to post a 3% increase in Q4 profit on Thursday. Xcel's Utility-Diversified group ranked 54th as of Friday's IBD. (investors.com)