John Bean Technologies Corporation (NYSE:JBT) reported adjusted earnings of $1.50 per share in fourth-quarter 2019, surpassing the Zacks Consensus Estimate of $1.39. The bottom-line figure, however, declined 10.2% from prior-year quarter figure of $1.67.
On a reported basis, the company’s earnings per share came in at $1.31 compared with the prior-year quarter’s $1.34.
The company’s revenues of $545.5 million in the reported quarter outpaced the Zacks Consensus Estimate of $530 million. Also, the top line improved 1% year over year. Acquisition growth of 9% helped offset a drop of 2% in organic sales, an unfavorable impact of foreign exchange of 1% and a 5% decline thanks to the absence of the ASC 606 transition benefit recorded in fourth-quarter 2018.
Orders in the JBT FoodTech segment increased 7.6%, year on year, to $372.1 million in the reported quarter. Orders in the JBT AeroTech segment summed $112.2 million, reflecting a year-over-year drop of 13.8%.
Backlog in the FoodTech segment edged down 1% year over year to $401.3 million. The AeroTech segment’s backlog came in at $304.6 million in the reported quarter, flat compared with the prior year quarter.
Cost and Margins
Cost of sales slid 0.3% year over year to $377.6 million in the fourth quarter. Gross profit improved 5.9% year over year to $167.9 million. Gross margin came in at 30.8% compared with the year-earlier quarter’s 29.5%.
Selling, general and administrative expenses flared up 21% year over year to $103.3 million. Adjusted operating profit fell 6.7% year over year to $69 million. Adjusted operating margin was 12.6% compared with prior-year quarter’s 13.7%.
In the reported quarter, adjusted EBITDA came in at $87.2 million, down 1.7% year over year. In the December-end quarter, AeroTech's margins expanded year over year, while margins at FoodTech declined primarily due to higher incentive compensation expense.
John Bean Technologies Corporation Price, Consensus and EPS Surprise
John Bean Technologies Corporation price-consensus-eps-surprise-chart | John Bean Technologies Corporation Quote
Segment Performance
JBT FoodTech: Net sales were down 1.8% year over year to $357.2 million. Adjusted operating profit declined 10.2% from the prior-year quarter to $53 million.
JBT AeroTech: Net sales improved 8.4% year over year to $188 million. The segment reported adjusted operating profit of $28.7 million, up 18% year over year.
Financial Performance
John Bean Technologies reported cash and cash equivalents of $39.5 million in 2019, down from the year-earlier figure of $43 million. The company generated $110.6 million of cash from operating activities during the 12-month period ended Dec 31, 2019 compared with the $154.6 million reported in the prior-year period. At the end of 2019, long-term debt was $698 million, up from $387 million as of Dec 31, 2018.
2019 Results
John Bean Technologies reported adjusted earnings per share of $4.96 in 2019, up 13% from the prior year’s $4.39. Earnings beat the Zacks Consensus Estimate of $4.86. On a reported basis, earnings per share came in at $4.03 compared with the $3.24 recorded in 2018.
Sales came in at $1.95 billion in 2019 compared with the previous year’s $1.92 billion. The top-line figure also beat the Zacks Consensus Estimate of $1.93 billion.
Guidance
John Bean Technologies anticipates revenue growth of 3-4% for the current year. It includes organic growth of 1% and acquisitions growth of 3%, with a foreign currency headwind of 0-1%. For the ongoing year, net income is projected at $159-$166 million. Adjusted EBITDA is expected between $315 million and $325 million. Adjusted EPS is expected between $5.15 and $5.35.
For the ongoing quarter, the company anticipates revenues between $440 million and $445 million and adjusted EPS is expected in the range of 75 cents to 80 cents.
Price Performance
John Bean Technologies’ shares have gained 22.7% in the past year compared with the industry’s 14% growth.
Zacks Rank and Stocks to Consider
John Bean Technologies currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Northwest Pipe Company (NASDAQ:NWPX) , Sharps Compliance Corp (NASDAQ:SMED) and Graco Inc. (NYSE:GGG) . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Northwest Pipe has an expected earnings growth rate of 19.5% for the current year. The stock has appreciated 50% over the past year.
Sharps Compliance has an estimated earnings growth rate of a whopping 767% for the ongoing year. In a year’s time, the company’s shares have gained 43%.
Graco has a projected earnings growth rate of 4.3% for 2020. The company’s shares have rallied 20% over the past year.
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