Story updated at 10 a.m. to reflect market activity.
Shares of Jarden gained 1.1% to $60.82 in morning trading.
The analyst firm also raised its EPS estimates for the housewares company through 2016. Jefferies analysts expect Jarden to report earnings of $3.95 a share for full year 2014, up from its previous estimate of $3.94 a share. The firm estimates earnings of $4.44 a share in 2015, and $4.93 a share in 2016, up from $4.40 and $4.85 a share, respectively.
Analysts Kevin Grundy and Peter Schanzer wrote that Jarden "remains our top pick in HPC/bevs, following our mgmnt meetings yesterday. JAH sounded good on the overall state of the business, Yankee expansion plans, and its ability to deliver on its LT targets."
Separately, TheStreet Ratings team rates JARDEN CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate JARDEN CORP (JAH) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 12.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, JAH's share price has jumped by 25.21%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- JARDEN CORP's earnings per share declined by 40.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, JARDEN CORP reported lower earnings of $1.81 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($3.95 versus $1.81).
- The gross profit margin for JARDEN CORP is currently lower than what is desirable, coming in at 32.86%. Regardless of JAH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.63% trails the industry average.
- Net operating cash flow has decreased to $83.70 million or 49.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: JAH Ratings Report