Oppenheimer Drops Estimates on Jarden Corp (JAH), Cites Warmer-than-Average Weather
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Oppenheimer lowered estimates on Jarden Corp (NYSE: JAH) Friday morning, citing a potential impact from the lack of snow and warmer temperatures across much of the U.S. on the company's winter-related categories.
According to the National Oceanic and Atmospheric Administration, as of December 39th, 23 percent of the contiguous U.S. was covered in snow, with an average depth of 1.5". On December 29th of last year, 47.5 percent of the contiguous U.S. was covered in snow, with an average depth of 5.5". The average temperature during November of 2011 was 44.3 degrees Fahrenheit vs. 43.0 degrees last year.
Oppenheimer's Joseph Altobello said, "The impact from this lack of snowfall and warmer weather will likely be felt in JAH's Branded Consumables and Outdoor Solutions segments, in categories such as fire logs, electric blankets and space heaters, and to a lesser extent, skiing, since sell-in (which was good) represents the vast majority of sales...To be clear, this does not impact our bullish stance on the shares, which in our view, remain undervalued given JAH's healthy organic growth in recent quarters and margin expansion opportunities. Thus, we are reiterating our Outperform rating on JAH, as well as our $44 DCF-derived target price."
Altobello lowered his fourth-quarter 2011 EPS estimate from $0.94 to $0.90, his first-quarter 2012 estimate from $0.48 to $0.45, second-quarter estimate from $1.04 to $1.02, raised his third-quarter estimate from $1.26 to $1.29 and moved the fourth-quarter 2012 estimate from $1.07 to $1.04. Altobello's FY11 EPS estimate was lowered from $3.40 to $3.36. and his FY12 estimate dropped from $3.85 to $3.80.
Shares of Jarden are currently trading down $0.12 (-0.40%) to $29.88.
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According to the National Oceanic and Atmospheric Administration, as of December 39th, 23 percent of the contiguous U.S. was covered in snow, with an average depth of 1.5". On December 29th of last year, 47.5 percent of the contiguous U.S. was covered in snow, with an average depth of 5.5". The average temperature during November of 2011 was 44.3 degrees Fahrenheit vs. 43.0 degrees last year.
Oppenheimer's Joseph Altobello said, "The impact from this lack of snowfall and warmer weather will likely be felt in JAH's Branded Consumables and Outdoor Solutions segments, in categories such as fire logs, electric blankets and space heaters, and to a lesser extent, skiing, since sell-in (which was good) represents the vast majority of sales...To be clear, this does not impact our bullish stance on the shares, which in our view, remain undervalued given JAH's healthy organic growth in recent quarters and margin expansion opportunities. Thus, we are reiterating our Outperform rating on JAH, as well as our $44 DCF-derived target price."
Altobello lowered his fourth-quarter 2011 EPS estimate from $0.94 to $0.90, his first-quarter 2012 estimate from $0.48 to $0.45, second-quarter estimate from $1.04 to $1.02, raised his third-quarter estimate from $1.26 to $1.29 and moved the fourth-quarter 2012 estimate from $1.07 to $1.04. Altobello's FY11 EPS estimate was lowered from $3.40 to $3.36. and his FY12 estimate dropped from $3.85 to $3.80.
Shares of Jarden are currently trading down $0.12 (-0.40%) to $29.88.
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