Stocks in Motion: Jarden
Shares of Jarden (JAH) were among the NYSE's losers Thursday, hitting a 52-week low after the consumer-products maker warned that fourth-quarter earnings will be below Wall Street forecasts.
The company put adjusted earnings at 50 cents to 54 cents a share, with sales above $960 million. Analysts polled by Thomson First Call expected earnings of 66 cents a share on sales of $883.3 million. For all of 2005, the company sees adjusted earnings of $2.10 to $2.14 a share, below the $2.24 a share that analysts expected. Jarden said that fourth-quarter results were hampered by weaker-than-expected performance at its FoodSaver and Holmes businesses.
The company, meanwhile, projected earnings growth of at least 15% during 2006, and organic sales growth of 3% to 5%. Analysts forecast 2006 earnings of $2.52 a share. The stock, which earlier in the day tumbled 13% to a 52-week low of $26.50, recently rebounded somewhat to trade at $28.39, down $2.03, or 6.7%.
Borders Group (BGP) climbed 10% after the bookseller said that fourth-quarter earnings would be near the top end of its guidance. The company put earnings at $1.70 to $1.80 a share, up from an earlier view of $1.60 to $1.80 a share. Analysts expect earnings of $1.70 a share. Sales during the fourth quarter, meanwhile, are expected to be $1.3 billion. Analysts are looking for sales of $1.39 billion.For all of 2005, Borders expects to report earnings of $1.35 to $1.45 a share. Previously, the company forecast earnings of $1.28 to $1.47 a share. Wall Street targets earnings of $1.38 a share. Borders also announced a new $250 million stock repurchase plan. Shares were recently up $2.19 to $24.60. Shares of BorgWarner (BWA) fell 4% after the maker of car transmissions issued a 2006 earnings guidance that fell below Wall Street's forecast. The company expects earnings of $4.22 to $4.57 a share. Excluding stock option expense, the company sees earnings of $4.39 to $4.74 a share. The forecast also includes the effect of weaker foreign currencies, which is expected to hurt earnings by 12 cents to 25 cents a share. Analysts are projecting earnings of $4.91 a share. The company predicts sales growth of 5% to 7%, or 9% to 11% when the impact of currency is stripped out. Wall Street targets sales of $4.8 billion. Shares were trading down $2.39 to $55.91.
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