NEW YORK, Sept. 11 (Reuters) - Jarden Corp JAH.N, the maker of consumer products including Sunbeam, Coleman, Marmot and Oster, is a good bet for low-risk earnings growth, according to a report in the Sept. 12 issue of Barron’s.
Jarden’s earnings rose to $2.90 per share in 2010 from 90 cents in 2003. It is on track this year for earnings of $3.37 per share and is valued at a multiple of only about 8.6 times this year’s profits, according to the report.
Most of Jarden’s brands, such as First Alert smoke detectors, hold industry-leading positions and are extremely important to retailers. Jarden also continues to expand its business, with nearly a third of its projected 2011 sales expected to come from products launched in the past three years, according to the report.
Senior executives have lucrative incentives tied to the company generating $5 per share in earnings by 2014. While Jarden is known for its acquisition strategy, it should be able to hit its earnings target by growing sales and improving margins in its existing businesses, according to the report.
Jarden’s shares closed at $28.14 on Friday. (Reporting by Clare Baldwin; Editing by Leslie Adler)