Jarden Corporation

Jarden Corporation (JAH - Snapshot Report), the maker of First Alert and other consumer products, recently reaffirmed its 2009 revenue guidance. The stock is cheap. It trades at only 4.65x forward earnings. JAH's PEG ratio is just 0.53.

Company Description

Jarden manufactures niche consumer products in three main business segments: Branded Consumables, Consumer Solutions, and Outdoor Solutions.

The company's famous brands include Rawlings, Crock-Pot, Mr. Coffee, Seal-a-Meal, and Pine Mountain.

2009 Guidance Reaffirmed

On Mar 3, at an analyst conference, Jarden reaffirmed its revenue guidance for 2009.

"We believe that our relatively strong performance in the current recessionary environment should translate into meaningful organic growth as the economy recovers," said Martin Franklin, Chairman and CEO.

"We will also maintain our disciplined approach to our capital structure, which continues to provide us with sufficient liquidity to fund new product development, and operating capital needs."

"Accordingly, we continue to expect that we will generate revenue of approximately $5 billion and free cash flow in excess of $250 million in 2009," he added.

Jarden Surprised by 15.28% in the Fourth-Quarter 2008

On Feb 11, Jarden reported fourth-quarter and full-year 2008 earnings and beat Wall Street estimates for the quarter by 11 cents per share. Adjusted net income was $62.7 million, or 83 cents per share, compared to $48.9 million, or 64 cents per share, for the fourth quarter of 2007. Analysts expected 72 cents.

Sales fell 8% in the quarter to $1.4 billion from $1.5 billion in the year ago period. However, for the year, sales jumped 16% to a record $5.4 billion from $4.7 billion in 2007. The company attributed the solid full year results to its strong brands and diversity of products.

Consensus Estimates Rise

Consensus estimates for the first quarter and 2009 have been moving higher. First-quarter estimates rose 2 cents to 12 cents in the last 60 days.

Full-year 2009 consensus estimates climbed 3 cents to $2.45 per share in the last 2 months.

Value Fundamentals

Jarden is a Zacks #1 Rank (strong buy) stock. The company has been consistently surprising on estimates, including the last 4 quarters by an average of 10.41%.

The company's forward P/E is just 4.65. JAH's price-to-book ratio is 0.69. Jarden also has an outstanding 5-year average return on equity (ROE) of 17.37%.