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Why Is JBT (JBT) Down 10.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for John Bean (JBT - Free Report) . Shares have lost about 10.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is JBT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
John Bean Beats on Q1 Earnings, Raises 2021 Guidance
John Bean reported adjusted earnings of 90 cents per share in first-quarter 2021, surpassing the Zacks Consensus Estimate of 77 cents. However, the bottom line declined 11% from the prior-year quarter.
On a reported basis, the company’s earnings per share was 84 cents compared with the prior-year quarter’s 90 cents.
Revenues of $418 million missed the Zacks Consensus Estimate of $421 million. Further, the top line declined 8.7% from the prior-year quarter figure of $458 million.
In the reported quarter, the company’s total orders went up 3.4% year over year to $486 million.
Orders in the JBT FoodTech segment increased 22.2% year over year to a record $386 million. This was spurred by needs of food processing customers serving the retail market. In the JBT AeroTech segment, orders plunged 35.5% to $100.4 million from the prior-year quarter.
Backlog in the FoodTech segment increased 24% from the year-ago quarter to $489 million as of Mar 31, 2021. The AeroTech segment’s backlog was $281 million at the end of the reported quarter, down 9.4% year over year. Total backlog of $769.5 million at the end of the first quarter was up 9.1% year over year.
Cost and Margins
Cost of sales decreased 9.5% year over year to $285 million during the March-end quarter. Gross profit was down 7% year over year to $133 million. Gross margin came in at 31.9% compared with the year-earlier quarter’s 31.2%.
Selling, general and administrative expenses were down 3% year over year to $94 million. Adjusted operating profit declined 17% year over year to $40 million. Adjusted operating margin came in at 9.6% in the first quarter compared with the prior-year quarter’s 10.5%. In the reported quarter, adjusted EBITDA was around $59 million, reflecting a year-over-year fall of 10.6%. Adjusted EBITDA margin was 14% compared with the year-ago quarter’s 14.4%.
Segment Performance
JBT FoodTech: Net sales came in at $311.8 million compared with the $309.7 million recorded in the prior-year quarter. Adjusted operating profit amounted to $42 million compared with the year-ago quarter’s $40.7 million.
JBT AeroTech: Net sales were $106 million, reflecting a decline of 28.3% from the prior-year quarter. The segment’s adjusted operating profit plummeted 46.5% year over year to $9.9 million.
Financial Performance
John Bean reported cash and cash equivalents of around $58 million in the March-end quarter, up from $47.5 million at the end of 2020. The company generated around $86 million of cash from operating activities in the reported quarter, compared with $14 million in the prior year quarter. The company’s total debt declined to $469.8 million as of Mar 31, 2021 from $734 million as of Mar 31, 2020.
Guidance
John Bean estimates second-quarter 2021 revenues to be $435-$455 million, aided by year-over-year growth at FoodTech segment.
Given robust commercial activity across most of its business, the company now projects adjusted earnings per share to lie between $4.40 and $4.60 for 2021, up from the prior projection of $4.30-$4.55.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -14.13% due to these changes.
VGM Scores
Currently, JBT has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, JBT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is JBT (JBT) Down 10.4% Since Last Earnings Report?
It has been about a month since the last earnings report for John Bean (JBT - Free Report) . Shares have lost about 10.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is JBT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
John Bean Beats on Q1 Earnings, Raises 2021 Guidance
John Bean reported adjusted earnings of 90 cents per share in first-quarter 2021, surpassing the Zacks Consensus Estimate of 77 cents. However, the bottom line declined 11% from the prior-year quarter.
On a reported basis, the company’s earnings per share was 84 cents compared with the prior-year quarter’s 90 cents.
Revenues of $418 million missed the Zacks Consensus Estimate of $421 million. Further, the top line declined 8.7% from the prior-year quarter figure of $458 million.
In the reported quarter, the company’s total orders went up 3.4% year over year to $486 million.
Orders in the JBT FoodTech segment increased 22.2% year over year to a record $386 million. This was spurred by needs of food processing customers serving the retail market. In the JBT AeroTech segment, orders plunged 35.5% to $100.4 million from the prior-year quarter.
Backlog in the FoodTech segment increased 24% from the year-ago quarter to $489 million as of Mar 31, 2021. The AeroTech segment’s backlog was $281 million at the end of the reported quarter, down 9.4% year over year. Total backlog of $769.5 million at the end of the first quarter was up 9.1% year over year.
Cost and Margins
Cost of sales decreased 9.5% year over year to $285 million during the March-end quarter. Gross profit was down 7% year over year to $133 million. Gross margin came in at 31.9% compared with the year-earlier quarter’s 31.2%.
Selling, general and administrative expenses were down 3% year over year to $94 million. Adjusted operating profit declined 17% year over year to $40 million. Adjusted operating margin came in at 9.6% in the first quarter compared with the prior-year quarter’s 10.5%. In the reported quarter, adjusted EBITDA was around $59 million, reflecting a year-over-year fall of 10.6%. Adjusted EBITDA margin was 14% compared with the year-ago quarter’s 14.4%.
Segment Performance
JBT FoodTech: Net sales came in at $311.8 million compared with the $309.7 million recorded in the prior-year quarter. Adjusted operating profit amounted to $42 million compared with the year-ago quarter’s $40.7 million.
JBT AeroTech: Net sales were $106 million, reflecting a decline of 28.3% from the prior-year quarter. The segment’s adjusted operating profit plummeted 46.5% year over year to $9.9 million.
Financial Performance
John Bean reported cash and cash equivalents of around $58 million in the March-end quarter, up from $47.5 million at the end of 2020. The company generated around $86 million of cash from operating activities in the reported quarter, compared with $14 million in the prior year quarter. The company’s total debt declined to $469.8 million as of Mar 31, 2021 from $734 million as of Mar 31, 2020.
Guidance
John Bean estimates second-quarter 2021 revenues to be $435-$455 million, aided by year-over-year growth at FoodTech segment.
Given robust commercial activity across most of its business, the company now projects adjusted earnings per share to lie between $4.40 and $4.60 for 2021, up from the prior projection of $4.30-$4.55.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -14.13% due to these changes.
VGM Scores
Currently, JBT has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, JBT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.