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John Bean (JBT) Q2 Earnings Top Estimates, Hikes '21 View
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John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.19 per share in second-quarter 2021, surpassing the Zacks Consensus Estimate of $1.00. The bottom line was 9% higher than earnings per share of $1.09 in the prior-year quarter. The upbeat results were driven by record order levels, which offset the impact of material inflation, supply chain and logistics disruptions, and higher labor costs.
On a reported basis, the company’s earnings per share was 95 cents compared with the prior-year quarter’s $1.01.
Revenues of $476 million beat the Zacks Consensus Estimate of $453 million and improved 15.6% from the prior-year quarter. The company witnessed year-over-year growth in both its segments.
John Bean Technologies Corporation Price, Consensus and EPS Surprise
In the reported quarter, the company’s total orders surged 68% year over year to a record $580 million. Orders in the JBT FoodTech segment shot up 51% year over year to $398 million. This was spurred by requirements of food processing customers serving the retail market. Pickup in activity on the foodservice side, as well as robust orders from the automated guided vehicle business led to the upside. In the JBT AeroTech segment, orders soared 123% to $182.5 million from the prior-year quarter, reflecting healthy demand from infrastructure projects along with seasonally strong cargo loader and deicer demand.
Backlog in the FoodTech segment increased 48% from the year-ago quarter to $531 million as of Jun 30, 2021. The AeroTech segment’s backlog was $349 million at the end of the reported quarter, up 23% year over year. Total backlog at the end of the second quarter was $880 million, up 37% year over year.
Cost and Margins
Cost of sales increased 15.7% year over year to $326 million during the second quarter. Gross profit was up 15% year over year to $150 million. Gross margin came in at 31.5% compared with the year-earlier quarter’s 31.6%.
Selling, general and administrative expenses were up 26% year over year to $102 million. Adjusted operating profit declined 3% year over year to $48 million. Adjusted operating margin came in at 10.2% in the second quarter compared with the prior-year quarter’s 12.1%. In the reported quarter, adjusted EBITDA was around $70 million, reflecting year-over-year growth of 2.5%. Adjusted EBITDA margin was 14.7% compared with the year-ago quarter’s 16.6%.
Segment Performance
JBT FoodTech: Net sales were $361 million compared with the $303 million in the prior-year quarter. Adjusted operating profit amounted to $52 million compared with the year-ago quarter’s $49 million.
JBT AeroTech: Net sales were $115 million, reflecting an improvement of 6% from the prior-year quarter. The segment’s adjusted operating profit grew 17.5% year over year to $12.1 million.
Financial Performance
John Bean reported cash and cash equivalents of around $202 million at the end of the second quarter of 2021, up from $47.5 million at the end of 2020. The company generated around $130 million of cash from operating activities in the first half of 2021, compared with $101 million in the prior-year quarter. The company’s total debt increased to $642 million as of Jun 30, 2021 from $525 million as of Dec 31, 2020.
Earlier this month, John Bean completed the acquisition of Prevenio, a leading provider of innovative food safety solutions, primarily for the poultry industry. This expands the company’s recurring revenue stream and enhances its ability to address critical food safety issues for customers. Prevenio is expected to generate annualized run rate revenues of approximately $50 million by end of this year and will be accretive to FoodTech segment’s EBITDA margins.
Guidance
John Bean anticipates third-quarter 2021 revenues to be $485-$505 million, aided by year-over-year growth at FoodTech segment. The adjusted earnings per share guidance is at $1.10-$1.20 for the quarter.
Backed by upbeat results in the first-half and the current improved order trends, the company expects total revenue expansion of 10% to 13% for 2021. John Bean raised adjusted earnings per share guidance for 2021 to $4.60-$4.80 compared with the prior range of $4.40 and $4.60. The company, however, stated that increased inflationary pressures and supply chain challenges will persist for the balance of the year.
Price Performance
John Bean’s shares have gained 43% in the past year compared with the industry’s rally of 83.5%.
Image: Bigstock
John Bean (JBT) Q2 Earnings Top Estimates, Hikes '21 View
John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.19 per share in second-quarter 2021, surpassing the Zacks Consensus Estimate of $1.00. The bottom line was 9% higher than earnings per share of $1.09 in the prior-year quarter. The upbeat results were driven by record order levels, which offset the impact of material inflation, supply chain and logistics disruptions, and higher labor costs.
On a reported basis, the company’s earnings per share was 95 cents compared with the prior-year quarter’s $1.01.
Revenues of $476 million beat the Zacks Consensus Estimate of $453 million and improved 15.6% from the prior-year quarter. The company witnessed year-over-year growth in both its segments.
John Bean Technologies Corporation Price, Consensus and EPS Surprise
John Bean Technologies Corporation price-consensus-eps-surprise-chart | John Bean Technologies Corporation Quote
In the reported quarter, the company’s total orders surged 68% year over year to a record $580 million. Orders in the JBT FoodTech segment shot up 51% year over year to $398 million. This was spurred by requirements of food processing customers serving the retail market. Pickup in activity on the foodservice side, as well as robust orders from the automated guided vehicle business led to the upside. In the JBT AeroTech segment, orders soared 123% to $182.5 million from the prior-year quarter, reflecting healthy demand from infrastructure projects along with seasonally strong cargo loader and deicer demand.
Backlog in the FoodTech segment increased 48% from the year-ago quarter to $531 million as of Jun 30, 2021. The AeroTech segment’s backlog was $349 million at the end of the reported quarter, up 23% year over year. Total backlog at the end of the second quarter was $880 million, up 37% year over year.
Cost and Margins
Cost of sales increased 15.7% year over year to $326 million during the second quarter. Gross profit was up 15% year over year to $150 million. Gross margin came in at 31.5% compared with the year-earlier quarter’s 31.6%.
Selling, general and administrative expenses were up 26% year over year to $102 million. Adjusted operating profit declined 3% year over year to $48 million. Adjusted operating margin came in at 10.2% in the second quarter compared with the prior-year quarter’s 12.1%. In the reported quarter, adjusted EBITDA was around $70 million, reflecting year-over-year growth of 2.5%. Adjusted EBITDA margin was 14.7% compared with the year-ago quarter’s 16.6%.
Segment Performance
JBT FoodTech: Net sales were $361 million compared with the $303 million in the prior-year quarter. Adjusted operating profit amounted to $52 million compared with the year-ago quarter’s $49 million.
JBT AeroTech: Net sales were $115 million, reflecting an improvement of 6% from the prior-year quarter. The segment’s adjusted operating profit grew 17.5% year over year to $12.1 million.
Financial Performance
John Bean reported cash and cash equivalents of around $202 million at the end of the second quarter of 2021, up from $47.5 million at the end of 2020. The company generated around $130 million of cash from operating activities in the first half of 2021, compared with $101 million in the prior-year quarter. The company’s total debt increased to $642 million as of Jun 30, 2021 from $525 million as of Dec 31, 2020.
Earlier this month, John Bean completed the acquisition of Prevenio, a leading provider of innovative food safety solutions, primarily for the poultry industry. This expands the company’s recurring revenue stream and enhances its ability to address critical food safety issues for customers. Prevenio is expected to generate annualized run rate revenues of approximately $50 million by end of this year and will be accretive to FoodTech segment’s EBITDA margins.
Guidance
John Bean anticipates third-quarter 2021 revenues to be $485-$505 million, aided by year-over-year growth at FoodTech segment. The adjusted earnings per share guidance is at $1.10-$1.20 for the quarter.
Backed by upbeat results in the first-half and the current improved order trends, the company expects total revenue expansion of 10% to 13% for 2021. John Bean raised adjusted earnings per share guidance for 2021 to $4.60-$4.80 compared with the prior range of $4.40 and $4.60. The company, however, stated that increased inflationary pressures and supply chain challenges will persist for the balance of the year.
Price Performance
John Bean’s shares have gained 43% in the past year compared with the industry’s rally of 83.5%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
John Bean carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Greif, Inc. (GEF - Free Report) , Lindsay Corporation (LNN - Free Report) and Pentair plc (PNR - Free Report) . 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.
Greif has an anticipated earnings growth rate of 47.2% for fiscal 2021. The company’s shares have gained around 64% in a year.
Lindsay has an estimated earnings growth rate of 1% for the ongoing fiscal year. The company’s shares have rallied 62% in the past year.
Pentair has a projected earnings growth rate of 26% for the current year. The stock has appreciated around 71% in a year’s time.