John Bean Technologies Corporation JBT reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41. Volume growth, gains from the company’s restructuring actions and supply-chain cost savings, and lower net interest expenses were instrumental in driving the results in the quarter.
On a reported basis, the company’s earnings per share (from continuing operations) were $1.18 compared with the prior-year quarter’s earnings of 97 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $445 million.
Backlog (from continuing operations) was $698 million at the end of the third quarter, up 1.3% year over year. Orders were up 10.5% year over year to $440 million.
John Bean Technologies Corporation Price, Consensus and EPS Surprise
John Bean Technologies Corporation price-consensus-eps-surprise-chart | John Bean Technologies Corporation Quote
John Bean’s Margins Improve Y/Y in Q3
The cost of sales increased 12.1% year over year to $290 million in the third quarter. Gross profit moved up 13% year over year to $164 million. The gross margin was 36.1% compared with the year-earlier quarter’s figure of 35.9%.
Selling, general and administrative expenses were up 15.3% year over year to $117 million. Operating profit improved 26.8% year over year to $47 million from the prior-year quarter’s $37 million. The operating margin was 10.3% compared with 9.1% in the third quarter of 2023.
In the quarter under review, adjusted EBITDA was around $82 million, reflecting a year-over-year increase of 23.2%. The adjusted EBITDA margin was 18% compared with the year-ago quarter’s 16.4%.
JBT’s Q3 Cash & Debt Position
John Bean reported cash and cash equivalents of $534.5 million at the end of the third quarter of 2024, an increase from $483 million at the end of 2023. The company generated around $104 million in cash from operating activities in the nine months ended Sept. 30, 2024, compared with $96 million in the prior-year period.
The company’s total debt was $648 million as of Sept. 30, 2024, up from $646 million as of Dec. 31, 2023.
John Bean’s Guidance for 2024
The company reduced 2024 income from continuing operations expectations to $116-$125 million from the prior stated $137-$146 million.
It expects revenues of $1.715-$1.750 billion for 2024. The adjusted EBITDA is forecast at $295-$305 million. The EBITDA margin is anticipated between 17% and 17.5%. John Bean expects adjusted earnings per share between $5.05 and $5.35 for 2024.
Update on JBT’s Combination With Marel
Following a preliminary review, the European Commission (“EC”) has indicated that JBT can notify its proposed acquisition of Marel under the EU Merger Regulation. The EC will conduct a standard 25-working-day review.
To accommodate this review, JBT and Marel will extend the voluntary takeover offer, allowing Marel shareholders sufficient time to tender shares after regulatory approvals.
JBT expects to complete the acquisition by the end of 2024.
On June 24, 2024, JBT formally announced a voluntary takeover offer to purchase all issued and existing Marel shares. The transaction led to an overall consideration mix of 65% stock and 35% cash. Marel stockholders will receive €950 million in cash and own approximately 38% of the combined company.
The proposed merger will unite these 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.
John Bean’s Stock Price Lags Industry
JBT shares have gained 0.3% in the past year compared with the industry’s 62.3% growth.
Image Source: Zacks Investment Research
How Did JBT’s Industry Peer Fare in Q3?
Pentair plc PNR reported third-quarter 2024 adjusted earnings per share of $1.09, beating the Zacks Consensus Estimate of $1.07. The bottom line also surpassed the company’s guidance of $1.06-$1.08 and improved 14% from the 94 cents reported in the prior year.
Net sales declined 1.5% year over year to $993 million in the quarter under review. However, the top line surpassed the Zacks Consensus Estimate of $990 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1% in the quarter.
A Manufacturing - Thermal Products Stock Awaiting Earnings Release
Zebra Technologies Corporation ZBRA is scheduled to release its third-quarter 2024 results on Oct. 29.
The Zacks Consensus Estimate for ZBRA’s third-quarter 2024 earnings is pegged at $3.24 per share, indicating a year-over-year surge from the prior year’s reported number of 87 cents. The estimate for the company’s top line is pegged at $1.21 billion, implying a decrease of 26.5% from the prior-year actual. It has a trailing four-quarter average surprise of 11.9%.
John Bean’s Zacks Rank & Another Stock to Consider
JBT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another top-ranked stock from the Industrial Products sector is Parker-Hannifin Corporation PH. It also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2025 earnings is pegged at $26.68 per share. The company has a trailing four-quarter average earnings surprise of 11.2%. PH shares have gained 76.4% in a year.
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