John Bean Technologies Corporation JBT reported adjusted earnings of $1.05 per share in second-quarter 2024, which came in 8.2% higher than the prior-year quarter. The figure missed the Zacks Consensus Estimate for earnings of $1.24.

On a reported basis, the company’s earnings per share (from continuing operations) were 95 cents compared with the prior-year quarter’s 89 cents.

Revenues of $402 million decreased 5.9% from the year-ago quarter. Organic growth was 5% in the quarter. However, unfavorable foreign currency impacted revenues by 1%. The top line missed the Zacks Consensus Estimate of $434 million.

Backlog (from continuing operations) was $697 million at the end of the second quarter, flat year over year. Orders were down 1.9% year over year to $437 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 decreased 7.6% year over year to $259 million. Gross profit was down 2.7% year over year to $143 million. The gross margin was 35.6% compared with the year-earlier quarter’s 34.4%.

Selling, general and administrative expenses were up 15.7% year over year to $116 million. Operating profit fell 39.5% to $27 million from the year-ago quarter’s $44 million. The operating margin was 6.7% compared with 10.4% in the second quarter of 2023.

Adjusted EBITDA was around $64 million, reflecting a year-over-year fall of 10.8%. The adjusted EBITDA margin was 15.8% compared with the year-ago quarter’s 16.7%.

Cash Position & Balance Sheet

John Bean reported cash and cash equivalents of $474 million at the end of the second quarter of 2024, down from $483 million at the end of 2023. The company generated around $32 million in cash from operating activities in the six months ended Jun 30, 2024, compared with $63 million in the prior-year period.

The company’s total debt was $647 million as of Jun 30, 2024, down from $950 million as of Dec 31, 2023.

Guidance for 2024

The company reduced 2024 revenue expectations to $1.715-$1.750 billion from the previously mentioned $1.735-$1.765 billion. JBT expects revenue growth of 3-5%.

Income from continuing operations is anticipated between $137 million and $146 million, updated from the $142-$154 million mentioned earlier. The adjusted EBITDA is forecast at $295-$305 million, updated from the $295-$310 million disclosed previously. 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 compared with the prior stated $5.05-$5.45.

Update on JBT’s Combination With Marel

On Jun 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.

Price Performance

John Bean’s shares have declined 16.1% in the past year against the industry’s 19.3% growth.

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How Did JBT’s Industry Peers Fare in Q2?

Pentair plc PNR reported second-quarter 2024 adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The bottom line was above the company’s guidance of $1.15-$1.17 per share for the quarter. The reported figure also improved 18% from the year-ago quarter. 

Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales rose 2% in the quarter, beating our projected increase of 1.2%.

Zebra Technologies Corporation ZBRA reported second-quarter 2024 adjusted earnings of $3.18 per share, which surpassed the Zacks Consensus Estimate of $2.82. However, the bottom line fell 3.3% year over year.

Total revenues of $1.22 billion surpassed the consensus estimate of $1.18 billion. The top line inched up 0.2% year over year, driven by strength in the Enterprise Visibility & Mobility unit. Consolidated organic net sales declined 0.3% year over year.

Zacks Rank & Stock to Consider

John Bean currently carries a Zacks Rank #3 (Hold).

We have mentioned a better-ranked stock below.

Applied Industrial Technologies AIT is expected to release its second-quarter 2024 results on Aug 15. It has an average trailing four-quarter surprise of 8.2%.

The consensus estimate for the company’s earnings per share is pegged at $2.52 for the quarter, suggesting 7.2% growth from the year-ago reported figure. The consensus mark for total revenues is pinned at $1.19 billion, indicating a year-over-year rise of 2.5%. RBC Bearings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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