UPDATE 3-Jarden sees strong Q1, 2009; shares rise 19 pct
* Sees Q1 results above Street view
* Consumer solutions segment strong
* Expects to meet or beat estimates for 2009
* Board approves early termination of rights plan
* Shares rise as much as 19.3 pct (Adds analysts' comments, updates share movement)
BANGALORE, April 16 (Reuters) - Jarden Corp (JAH.N) gave a better-than-expected first-quarter forecast, riding on the success of its consumer solutions segment, and said it expects to meet or exceed Wall Street estimates for 2009.
Jarden, whose consumer solutions segment includes products such as Crock-Pot cookware, Sunbeam appliances and Healthometer weighing scales, said its other businesses were also performing in line with expectations.
The company's shares rose as much as 19.3 percent on Thursday.
"Inventory destocking at retail in the fourth quarter appears to have worked down, as re-orders for Jarden's products began to come back in January in the consumer solutions segment," CJS Securities analyst Charles Strauzer said.
Retailers likely overshot on destocking which caused new orders to come in earlier in the quarter than usual, said Strauzer, who owns Jarden stock.
Strauzer, who has a "market outperform" rating on Jarden, raised his target on the company's stock to $25 from $20. He disclosed that his firm may seek to do business with the company over the next three months.
Jarden, which sells products ranging from food containers and playing cards to home appliances and outdoor gear, expects first-quarter earnings of 21 to 23 cents a share before special items, on revenue of $1.14 billion.
This compares with analysts' average estimate of 11 cents a share on revenue of $1.10 billion, according to Reuters Estimates.
"The company is executing well in a challenging macroeconomic environment, while valuation remains compelling; thus, we would continue to be buyers," Oppenheimer analyst Joseph Altobello said in a note to clients.
Altobello has an "outperform" rating and a price target of $24 on Jarden's stock.
Rye, New York-based Jarden, which derives 40 percent of its revenue from international markets, has often said the diversity of its products protects its results.
In the fourth quarter, for instance, it had strong sales of its Ball storage containers and Bicycle playing cards -- signs that more consumers stayed home amid the deepening recession and bought products to suit the change in lifestyle.
Additionally, Jarden said its board approved an early termination date for the stockholder rights plan which was implemented on Nov. 19, 2008. The company advanced the termination date for the plan to Nov. 18, 2009.
Jarden shares were up $2.92 or 18 percent at $19.23 on the New York Stock Exchange on Thursday afternoon, off an earlier high at $19.45. (Editing by Dave Zimmerman, John Wallace and Matthew Lewis)
- Qatar adamant it will host 2022 World Cup despite doubts
- Argentina's Fernandez to meet billionaire investor Soros in New York
- New Jersey hiker killed by black bear: police
- Exclusive: Iran seeks give and take on Islamic State militants, nuclear program
- Islamic State urges attacks on U.S., French citizens, taunts Obama