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John Bean (JBT) Q1 Earnings Surpass Estimates, Increase Y/Y
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John Bean Technologies Corporation (JBT - Free Report) reported first-quarter 2024 adjusted earnings from continuing operations of 85 cents per share, up 39% from the year-ago quarter, reflecting cost savings from its supply-chain initiatives and restructuring program. The figure beat the Zacks Consensus Estimate of earnings of 82 cents per share.
On a reported basis, the company’s earnings per share (from continuing operations) were 71 cents, a 34% improvement from the year-ago quarter’s 53 cents.
Revenues of $392 million were up 1% from the year-ago quarter. The top-line missed the Zacks Consensus Estimate of $397 million.
John Bean Technologies Corporation Price, Consensus and EPS Surprise
The cost of sales dipped 1.4% year over year to $252 million. Gross profit was up 5.6% year over year to $140 million. The gross margin was 35.8% compared with the year-earlier quarter’s figure of 34.2%.
Selling, general and administrative expenses were up 6.2% year over year to $110 million. Adjusted operating profit increased 13% to $37 million from the year-ago quarter’s $32.6 million. Adjusted operating margin was 9.4%, a 100-basis point expansion from the first quarter of 2023.
Adjusted EBITDA was around $57 million, reflecting a year-over-year increase of 6%. Adjusted EBITDA margin was 14.6% compared with the year-ago quarter’s 14%.
The company completed its restructuring program in the quarter, thus incurring an expense of $1 million. Its cumulative expense runs to approximately $18 million. John Bean Technologies has realized approximately $4 million in restructuring savings during the quarter and is on track to achieve cumulative annual run-rate cost savings of approximately $18 million.
JBT’s backlog totaled $664 million at the end of the first quarter, a 2% decline from the backlog of $678 million at the first-quarter 2023 end. Orders were down 4% year over year to $389 million reflecting weak markets in North America, including timing of warehouse automation orders and continuation of the slower investment profile in the poultry market.
Cash Position and Balance Sheet
John Bean Technologies reported cash and cash equivalents of $479 million at the end of the first quarter compared with $483 million at the end of 2023. The company generated around $10 million in cash from continuing operating activities compared with $11 million in the prior-year quarter. Free cash flow was an inflow of $0.7 million against an outflow of $4.5 million in the first quarter of 2023.
The company’s total debt was $647 million as of Mar 31, 2024, up from $646 million as of Dec 31, 2023.
Guidance for 2024
The company expects revenues between $1.735 billion and $1.765 billion for 2024. The midpoint of the range indicates year-over-year growth of 5%. JBT expects organic growth in the range of 4% to 6%.
Income from continuing operations is likely to be between $142 million and $154 million. Adjusted EBITDA is forecasted in the range of $295 - $310 million, indicating year-over-year growth of 11% at the midpoint. EBITDA margin is likely to be between 17% and 17.5%. JBT had reported adjusted EBITDA margin of 16.4% in 2023.
John Bean expects adjusted earnings per share between $5.05 and $5.45 in 2024. The midpoint of the range suggests 28% year-over-year growth. Margins are expected to sequentially improve through the quarters reflecting improving market conditions and gains from strategic sourcing actions.
Update on JBT’s Pending Combination With Marel
On Apr 4, 2024, JBT and Marel executed a definitive transaction agreement related to JBT’s previously announced intention to make a voluntary takeover offer for the issued and outstanding shares of Marel. Both parties have completed confirmatory due diligence. Subject to regulatory clearance procedures, John Bean continues to expect to close the transaction by the end of 2024.
The proposed merger will unite two renowned companies with complementary product portfolios, well-known brands and advanced technology. The combined company, which is expected to be named JBT Marel Corporation, is poised to become a leading and diversified global food and beverage technology solutions provider. Anticipated benefits of the merger include significant cost synergies exceeding $125 million within three years. JBT Marel is also expected to benefit from additional revenue synergies, given attractive cross-selling, go-to-market effectiveness, scaled innovation and enhanced global customer care capabilities.
Price Performance
John Bean’s shares have declined 12.5% in the past year against the industry’s 19.4% growth.
Image Source: Zacks Investment Research
How Did JBT’s Industry Peers Fare in Q1?
Pentair plc (PNR - Free Report) reported first-quarter 2024 adjusted earnings per share of 94 cents, beating the Zacks Consensus Estimate of 90 cents. The bottom line improved 3% from the year-ago quarter attributed to favorable mix and price and gains from transformation initiatives.
Pentair’s net sales dipped 1% year over year to $1.02 billion which outpaced the consensus estimate of $1 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1%.
Zebra Technologies Corporation (ZBRA - Free Report) reported first-quarter adjusted earnings of $2.84 per share, which slumped 28% year over year owing to broad-based softness across its end markets. Earnings per share beat the Zacks Consensus Estimate of $2.46.
Total revenues of $1.2 billion surpassed the consensus estimate of $1.1 billion. The top line plunged 16.4% and consolidated organic net sales declined 16.8% year over year.
RBC Bearings (RBC - Free Report) is expected to release its second-quarter fiscal 2024 results on May 17. RBC earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters while falling short on one occasion, the average surprise being 6.4%.
The consensus estimate for the company’s earnings per share is pegged at $2.32 for the quarter, suggesting 9% growth from the year-ago reported figure. The consensus mark for total revenues is pinned at $413 million, indicating a year-over-year rise of 4.8%. RBC Bearings currently carries a Zacks Rank #2 (Buy).
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John Bean (JBT) Q1 Earnings Surpass Estimates, Increase Y/Y
John Bean Technologies Corporation (JBT - Free Report) reported first-quarter 2024 adjusted earnings from continuing operations of 85 cents per share, up 39% from the year-ago quarter, reflecting cost savings from its supply-chain initiatives and restructuring program. The figure beat the Zacks Consensus Estimate of earnings of 82 cents per share.
On a reported basis, the company’s earnings per share (from continuing operations) were 71 cents, a 34% improvement from the year-ago quarter’s 53 cents.
Revenues of $392 million were up 1% from the year-ago quarter. The top-line missed the Zacks Consensus Estimate of $397 million.
John Bean Technologies Corporation Price, Consensus and EPS Surprise
John Bean Technologies Corporation price-consensus-eps-surprise-chart | John Bean Technologies Corporation Quote
The cost of sales dipped 1.4% year over year to $252 million. Gross profit was up 5.6% year over year to $140 million. The gross margin was 35.8% compared with the year-earlier quarter’s figure of 34.2%.
Selling, general and administrative expenses were up 6.2% year over year to $110 million. Adjusted operating profit increased 13% to $37 million from the year-ago quarter’s $32.6 million. Adjusted operating margin was 9.4%, a 100-basis point expansion from the first quarter of 2023.
Adjusted EBITDA was around $57 million, reflecting a year-over-year increase of 6%. Adjusted EBITDA margin was 14.6% compared with the year-ago quarter’s 14%.
The company completed its restructuring program in the quarter, thus incurring an expense of $1 million. Its cumulative expense runs to approximately $18 million. John Bean Technologies has realized approximately $4 million in restructuring savings during the quarter and is on track to achieve cumulative annual run-rate cost savings of approximately $18 million.
JBT’s backlog totaled $664 million at the end of the first quarter, a 2% decline from the backlog of $678 million at the first-quarter 2023 end. Orders were down 4% year over year to $389 million reflecting weak markets in North America, including timing of warehouse automation orders and continuation of the slower investment profile in the poultry market.
Cash Position and Balance Sheet
John Bean Technologies reported cash and cash equivalents of $479 million at the end of the first quarter compared with $483 million at the end of 2023. The company generated around $10 million in cash from continuing operating activities compared with $11 million in the prior-year quarter. Free cash flow was an inflow of $0.7 million against an outflow of $4.5 million in the first quarter of 2023.
The company’s total debt was $647 million as of Mar 31, 2024, up from $646 million as of Dec 31, 2023.
Guidance for 2024
The company expects revenues between $1.735 billion and $1.765 billion for 2024. The midpoint of the range indicates year-over-year growth of 5%. JBT expects organic growth in the range of 4% to 6%.
Income from continuing operations is likely to be between $142 million and $154 million. Adjusted EBITDA is forecasted in the range of $295 - $310 million, indicating year-over-year growth of 11% at the midpoint. EBITDA margin is likely to be between 17% and 17.5%. JBT had reported adjusted EBITDA margin of 16.4% in 2023.
John Bean expects adjusted earnings per share between $5.05 and $5.45 in 2024. The midpoint of the range suggests 28% year-over-year growth. Margins are expected to sequentially improve through the quarters reflecting improving market conditions and gains from strategic sourcing actions.
Update on JBT’s Pending Combination With Marel
On Apr 4, 2024, JBT and Marel executed a definitive transaction agreement related to JBT’s previously announced intention to make a voluntary takeover offer for the issued and outstanding shares of Marel. Both parties have completed confirmatory due diligence. Subject to regulatory clearance procedures, John Bean continues to expect to close the transaction by the end of 2024.
The proposed merger will unite two renowned companies with complementary product portfolios, well-known brands and advanced technology. The combined company, which is expected to be named JBT Marel Corporation, is poised to become a leading and diversified global food and beverage technology solutions provider. Anticipated benefits of the merger include significant cost synergies exceeding $125 million within three years. JBT Marel is also expected to benefit from additional revenue synergies, given attractive cross-selling, go-to-market effectiveness, scaled innovation and enhanced global customer care capabilities.
Price Performance
John Bean’s shares have declined 12.5% in the past year against the industry’s 19.4% growth.
Image Source: Zacks Investment Research
How Did JBT’s Industry Peers Fare in Q1?
Pentair plc (PNR - Free Report) reported first-quarter 2024 adjusted earnings per share of 94 cents, beating the Zacks Consensus Estimate of 90 cents. The bottom line improved 3% from the year-ago quarter attributed to favorable mix and price and gains from transformation initiatives.
Pentair’s net sales dipped 1% year over year to $1.02 billion which outpaced the consensus estimate of $1 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1%.
Zebra Technologies Corporation (ZBRA - Free Report) reported first-quarter adjusted earnings of $2.84 per share, which slumped 28% year over year owing to broad-based softness across its end markets. Earnings per share beat the Zacks Consensus Estimate of $2.46.
Total revenues of $1.2 billion surpassed the consensus estimate of $1.1 billion. The top line plunged 16.4% and consolidated organic net sales declined 16.8% year over year.
Zacks Rank & a Stock to Consider
John Bean currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RBC Bearings (RBC - Free Report) is expected to release its second-quarter fiscal 2024 results on May 17. RBC earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters while falling short on one occasion, the average surprise being 6.4%.
The consensus estimate for the company’s earnings per share is pegged at $2.32 for the quarter, suggesting 9% growth from the year-ago reported figure. The consensus mark for total revenues is pinned at $413 million, indicating a year-over-year rise of 4.8%. RBC Bearings currently carries a Zacks Rank #2 (Buy).