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Here's Why You Should Hold John Bean (JBT) in Your Portfolio Now
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John Bean Technologies Corporation (JBT - Free Report) has been delivering sequential improvements in adjusted earnings per share (EPS) for the past three quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures. This has been aided by demand from infrastructure, cargo and defense markets, as well as improvement in the commercial airline market.
The development of innovative products and acquisitions to augment product offerings will also drive JBT’s growth.
John Bean currently has a Zacks Rank #3 (Hold) and a VGM Score of B.
Let’s delve deeper and analyze the factors that make this stock worth holding on to at present.
Solid Q4 Results: The company reported adjusted earnings of $1.49 per share in fourth-quarter 2022. The bottom line surged 60% from the prior-year quarter. Revenues of $599 million marked an improved 20.4% from the prior-year quarter.
Upbeat FY23 Guidance: John Bean expects revenues to improve 6-10% from the 2022 reported level. Revenue growth is projected to be 5-9% for the FoodTech segment, which includes a 1-4% contribution from organic growth and 4-5% from acquisitions. The AeroTech segment’s revenues are expected to increase 10-13% from that reported in 2022.
Positive Earnings Surprise History: JBT has an average trailing four-quarter earnings surprise of 14.7%.
Healthy Growth Projections: The Zacks Consensus Estimate for John Bean’s fiscal 2023 earnings is pegged at $5.29, indicating a 10.9% year-over-year increase. The earnings estimate has been unchanged in the past month.
Growth Drivers: The company’s customer engagement and pipeline opportunities are strong as it offers core technologies and solutions for food and beverage processing. Also, improving commercial travel trends benefit AeroTech’s products and services.
The AeroTech segment is showing signs of recovery on account of demand from infrastructure, cargo and defense markets, and improvement in the commercial airline market. The passenger airline industry contributes a significant portion to the segment’s revenues. Passenger air travel has picked up from the 2020 levels, courtesy of the re-opening of travel routes. Airport infrastructure spending, subject to long lead time contracts, is expected to be healthy. Aftermarket revenues are gaining steam, as equipment utilization increases for customers in line with air traffic demand.
In 2022, John Bean introduced its Elevate 2.0 strategy, which is expected to drive continued growth and margin expansion. The food and beverage processing industry is poised for continued growth, supported by favorable underlying secular and cyclical trends.
Also, considering the rising demand for digitally-enabled customer-centric solutions, along with offerings that support automation and sustainability initiatives, the company is focused on becoming a pure-play food and beverage technology solutions provider. It is considering strategic alternatives for the AeroTech segment.
The company will continue to introduce products that support customers' needs for yield, capacity, automation and sustainability. It will also look for strategic acquisitions that provide meaningful synergies with FoodTech's existing products and solutions.
Near-Term Headwinds
John Bean is exposed to headwinds, such as material inflation, supply-chain and logistic disruptions, and higher labor costs. Shortages of critical raw materials (particularly electronic components) and labor impeded production and deliveries in both segments. It also increased the overall costs of running the business.
These factors are expected to dent the company’s margins in 2023. Despite the expected growth in revenues in 2023, challenges associated with supply-chain disruptions, high inflation, and labor availability will likely dent John Bean's margins.
Muted customer spending amid inflationary pressures may continue to impair the FoodTech segment’s demand levels. Revenue growth is expected to be 5-9% in 2023. The segment’s operating margin is expected between 13% and 14%.
The company expects corporate expenses to be roughly 2.7% of revenues. This is due to ongoing development costs related to OmniBlu, as it is expanded to additional product lines.
Price Performance
John Bean’s shares have gained 11% in the past six months compared with the industry’s growth of 17.7%.
Encore Wire has an average trailing four-quarter earnings surprise of 146.8%. The Zacks Consensus Estimate for WIRE’s 2023 earnings is pegged at $19.76 per share. The consensus estimate for 2023 earnings has moved north by 1.7% in the past 60 days. Its shares gained 32% in the last six months.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 45.9% in the last six months.
The Zacks Consensus Estimate for Illinois Tool Works’ fiscal 2023 earnings per share is pegged at $9.53, suggesting an increase of 3.9% from that reported in the last year. The consensus estimate for fiscal 2023 earnings rose 1.3% in the last 60 days. ITW has a trailing four-quarter average earnings surprise of 0.9%. Its shares gained 21.1% in the six months.
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Here's Why You Should Hold John Bean (JBT) in Your Portfolio Now
John Bean Technologies Corporation (JBT - Free Report) has been delivering sequential improvements in adjusted earnings per share (EPS) for the past three quarters, which is impressive, considering the ongoing supply-chain disruptions and inflationary pressures. This has been aided by demand from infrastructure, cargo and defense markets, as well as improvement in the commercial airline market.
The development of innovative products and acquisitions to augment product offerings will also drive JBT’s growth.
John Bean currently has a Zacks Rank #3 (Hold) and a VGM Score of B.
Let’s delve deeper and analyze the factors that make this stock worth holding on to at present.
Solid Q4 Results: The company reported adjusted earnings of $1.49 per share in fourth-quarter 2022. The bottom line surged 60% from the prior-year quarter. Revenues of $599 million marked an improved 20.4% from the prior-year quarter.
Upbeat FY23 Guidance: John Bean expects revenues to improve 6-10% from the 2022 reported level. Revenue growth is projected to be 5-9% for the FoodTech segment, which includes a 1-4% contribution from organic growth and 4-5% from acquisitions. The AeroTech segment’s revenues are expected to increase 10-13% from that reported in 2022.
Positive Earnings Surprise History: JBT has an average trailing four-quarter earnings surprise of 14.7%.
Healthy Growth Projections: The Zacks Consensus Estimate for John Bean’s fiscal 2023 earnings is pegged at $5.29, indicating a 10.9% year-over-year increase. The earnings estimate has been unchanged in the past month.
Growth Drivers: The company’s customer engagement and pipeline opportunities are strong as it offers core technologies and solutions for food and beverage processing. Also, improving commercial travel trends benefit AeroTech’s products and services.
The AeroTech segment is showing signs of recovery on account of demand from infrastructure, cargo and defense markets, and improvement in the commercial airline market. The passenger airline industry contributes a significant portion to the segment’s revenues. Passenger air travel has picked up from the 2020 levels, courtesy of the re-opening of travel routes. Airport infrastructure spending, subject to long lead time contracts, is expected to be healthy. Aftermarket revenues are gaining steam, as equipment utilization increases for customers in line with air traffic demand.
In 2022, John Bean introduced its Elevate 2.0 strategy, which is expected to drive continued growth and margin expansion. The food and beverage processing industry is poised for continued growth, supported by favorable underlying secular and cyclical trends.
Also, considering the rising demand for digitally-enabled customer-centric solutions, along with offerings that support automation and sustainability initiatives, the company is focused on becoming a pure-play food and beverage technology solutions provider. It is considering strategic alternatives for the AeroTech segment.
The company will continue to introduce products that support customers' needs for yield, capacity, automation and sustainability. It will also look for strategic acquisitions that provide meaningful synergies with FoodTech's existing products and solutions.
Near-Term Headwinds
John Bean is exposed to headwinds, such as material inflation, supply-chain and logistic disruptions, and higher labor costs. Shortages of critical raw materials (particularly electronic components) and labor impeded production and deliveries in both segments. It also increased the overall costs of running the business.
These factors are expected to dent the company’s margins in 2023. Despite the expected growth in revenues in 2023, challenges associated with supply-chain disruptions, high inflation, and labor availability will likely dent John Bean's margins.
Muted customer spending amid inflationary pressures may continue to impair the FoodTech segment’s demand levels. Revenue growth is expected to be 5-9% in 2023. The segment’s operating margin is expected between 13% and 14%.
The company expects corporate expenses to be roughly 2.7% of revenues. This is due to ongoing development costs related to OmniBlu, as it is expanded to additional product lines.
Price Performance
John Bean’s shares have gained 11% in the past six months compared with the industry’s growth of 17.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the Industrial Products sector are Encore Wire Corporation (WIRE - Free Report) , OI Glass, Inc. (OI - Free Report) , and Illinois Tool Works Inc. (ITW - Free Report) . WIRE flaunts a Zacks Rank #1 (Strong Buy) at present, and OI and ITW have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Encore Wire has an average trailing four-quarter earnings surprise of 146.8%. The Zacks Consensus Estimate for WIRE’s 2023 earnings is pegged at $19.76 per share. The consensus estimate for 2023 earnings has moved north by 1.7% in the past 60 days. Its shares gained 32% in the last six months.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 45.9% in the last six months.
The Zacks Consensus Estimate for Illinois Tool Works’ fiscal 2023 earnings per share is pegged at $9.53, suggesting an increase of 3.9% from that reported in the last year. The consensus estimate for fiscal 2023 earnings rose 1.3% in the last 60 days. ITW has a trailing four-quarter average earnings surprise of 0.9%. Its shares gained 21.1% in the six months.