Stock to Avoid: John Bean Technologies - Analyst Blog

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Zacks Investment Research downgraded John Bean Technologies Corporation ( JBT ) to a Zacks Rank #5 (Strong Sell) on Mar 29, 2014. Going by the Zacks model, companies with a Zacks Rank #5 have strong chances of performing worse than the broader market.

Why the Downgrade?

John Bean Technologies failed to impress its shareholders or the market at large as evidenced from a nearly 3% fall in its share price since the company reported its fourth-quarter 2013 results on Mar 4, 2014. A snapshot of the quarter's results is provided below:

Adjusted earnings per share from continuing operations were 54 cents, down from 64 cents recorded in the year-ago quarter. However, the bottom line came in ahead of the Zacks Consensus Estimate of 44 cents.

Revenues generated in the quarter were $288 million, down 1.6% year over year. The decline was due primarily to a 5.1% fall in revenues from the JBT AeroTech segment, offset partially by a 1.0% increase in revenues from the JBT FoodTech segment. Cost of sales increased 0.3%, while gross margin was down 140 basis points.

For first-quarter 2014, John Bean Technologies expects earnings per share to be slightly above the break-even level but much lower than the 14 cents recorded in the year-ago quarter.

Weak results in the fourth quarter as well as a poor guidance for first-quarter 2014 triggered downward revisions in earnings estimates. In the last 30 days, the Zacks Consensus Estimate for John Bean Technologies has decreased 9.5% to $1.43 for 2014 and 16.1% to $1.62 for 2015.

Other Stocks to Consider

John Bean Technologies Corporation has a market capitalization of $876 million. Some better-ranked stocks in the machinery industry include Active Power Inc. ( ACPW ), Lennox International, Inc. ( LII ) and Broadwind Energy, Inc. ( BWEN ), all of which carry a Zacks Rank #2 (Buy).



ACTIVE POWER (ACPW): Free Stock Analysis Report

BROADWIND ENRGY (BWEN): Free Stock Analysis Report

JOHN BEAN TECH (JBT): Free Stock Analysis Report

LENNOX INTL INC (LII): Free Stock Analysis Report

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Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ACPW , BWEN , JBT , LII

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As of 12/19/2014, 04:15 PM


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