Tupperware stock plummeted after the gains as the company slipped into the red

Tupperware Brands Corp. TUP,
+4.86%
Shares fell 28% in premarket trading on Wednesday after the kitchen products maker posted a surprise loss and said it found misstatements in its historical accounting for income taxes. The company earned a preliminary loss from continuing operations of $35.2 million, or 79 cents a share, for the fourth quarter, compared to income from continuing operations of $15.4 million, or 32 cents a share, for the year-ago period share recorded. Tupperware posted an adjusted loss of 24 cents a share from continuing operations. Analysts tracked by FactSet were expecting 22 cents a share of adjusted earnings based on three estimates. Revenue fell to $313.7 million from $390.1 million while analysts were forecasting $294.3 million based on two estimates. “We have raised prices to protect gross margins, worked with our banks to provide more financial flexibility, accelerated our restructuring efforts as part of our ongoing commitment to right-sizing the business, and developed innovative programs to reduce inventory levels in the fourth quarter to be significantly reduced. CFO Mariela Matute said in the press release, noting that 2023 is expected to be a “transition year.” In addition, Tupperware announced in its press release that it has identified misstatements in its historical income tax accounting and that it may discover other misstatements in its financials for the current period and prior periods as it works to prepare the books for the most recent year to complete. Tupperware plans to “disclose a material weakness in internal control over financial reporting” in its 10-K.