Tupperware stock crashed 45% this morning: this is why

Tupperware Brands Corporation (NYSE: TUP) crashed about 45% this morning after the kitchen and household products company raised doubt about its “ability to continue as a going concern”.

Tupperware could fail to comply with covenants in its credit agreements

The multinational reported disappointing results for its fiscal third quarter on Wednesday as well. But investors were more concerned about that warning. The press release reads:

According to Tupperware, it’s negotiating with lenders but is not sure if it’ll succeed in revising the Credit Agreement.

Versus its year-to-date high, Tupperware stock is now down nearly 80%.

Tupperware shares also tanked on disappointing earnings report

• Net income printed at $16.8 million that translates to 38 cents a share
• A year-ago, Tupperware had $86.1 million loss or $1.63 per share
• Adjusted EPS was 14 cents as per the earnings press release
• Revenue tanked 20% on a year-over-year basis to $302.8 million
• Consensus was 42 cents a share of EPS on $316.1 million revenue

Consolidated net leverage ratio, the Orlando-headquartered company said was 4.17 this quarter, within the debt covenant limit of 4.5. CFO Mariela Matute said: