Goldman Sachs Raises Estimates On Jarden Corp. Following Solid Earnings Results
January 25, 2011 11:31 AM
Jarden (NYSE: JAH) announced that 4Q2010 revenues will be at least $1.65 billion, or 3%-4% ahead of our prior $1.59 billion forecast.
Goldman raises its 4Q EPS estimate by $0.04 to $0.82 to reflect assumed organic sales growth of 8% versus its prior 5% forecast. Goldman is boosting its 2011 and 2012 estimates by $0.05 and $0.06 to $3.34 and $3.81. This reflects the higher 2010 base and better margin in sporting goods due to low winter sports inventory exiting 4Q.
Goldman is encouraged by the strong sales momentum at the company. Recall that the company gave positive indications on FY2011 sales outlook a few weeks ago. Goldman thinks this augurs well since the company has visibility to advanced orders for most of its seasonal products.
Upside risks include better-than-anticipated sales growth or meaningful share repurchases. Downside risks include more severe commodity or transport cost inflation. Goldman raises its price target on JAH to $38 and has a Neutral rating
JAH is trading higher at $38.31
