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UPDATE 3-Jarden sees strong Q1, 2009; shares rise 19 pct
April 16, 2009 / 12:15 PM / 8 years ago

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)
 By Dhanya Skariachan
 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
 "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
 "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)

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