Jarden Corporation (JAH) has surprised on estimates four quarters in a row by an average of 12.57%. The company is trading with a forward P/E of 11.
Company Description
Jarden manufactures niche consumer products in three main business segments: Branded Consumables, Consumer Solutions, and Outdoor Solutions.
Some of the company’s famous brands include Rawlings, Crock-Pot, Mr. Coffee, Seal-a-Meal, and Pine Mountain.
Jarden Surprised By 14.81% in the Third Quarter
Jarden reported third quarter results on Oct 28 that beat the Zacks Consensus by 12 cents. Earnings per share were 93 cents compared to the consensus of 81 cents.
Sales fell 6.7% to $1.4 billion from $1.5 billion in the year ago period. Most of the sales weakness was due to the global recession and general retail weakness however about $44 million of the $104 million decrease was due to currency exchange fluctuations.
The company saw some positive momentum in its businesses. It expects to finish 2009 ahead of its earlier stated goals with revenue of about $5 billion. The company is optimistic about 2010. It anticipates organic sales growth next year.
Zacks Consensus Estimates Jump
Analysts liked what they heard in the third quarter. Fourth quarter Zacks Consensus Estimates are up 4 cents to 76 cents in the last month.
All 7 covering analysts raised 2009 estimates in the last month by an average of 14 cents to $2.54 per share.
Analysts are bullish about 2010. They expect 10.08% earnings growth for the year. The 2010 Zacks Consensus Estimate rose 5% to $2.79 from $2.66 in the last 30 days.
Value Fundamentals
Jarden is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of just 1.39. The company also has an outstanding 5-year average return on equity of 16.08%. Jarden also rewards shareholders with a dividend currently paying a 1.10% yield.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
