John Bean Technologies Corporation (JBT) reported adjusted earnings of $1.40 per share in the fourth quarter of 2023. This represents a substantial 24% increase from the year-ago quarter, reflecting a strong operational performance and solid execution of its supply-chain initiatives. The figures surpassed the Zacks Consensus Estimate of earnings of $1.39.
Financial Highlights
On a reported basis, the company’s earnings per share (from continuing operations) were $1.64, marking a significant 69% improvement from the year-ago quarter’s 97 cents. Revenues of $445 million increased 1% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $443 million.
Growth and Margin Improvement
The cost of sales decreased 4.6% year over year to $284 million in the fourth quarter, leading to a 12% increase in gross profit to $161 million. The gross margin expanded to 36.2% from the year-earlier quarter’s figure of 32.6%. The company also reported an increase in selling, general and administrative expenses, which were up 6% year over year to $104 million. Adjusted operating profit and margin also saw significant improvements.
Cash Position and 2023 Performance
John Bean reported cash and cash equivalents of $483 million, a substantial increase from $72 million at the end of 2022. The company generated around $74 million in cash from operating activities in 2023. Revenues for the year rose 4.7% year over year to $1.66 billion, mainly driven by acquisitions. Orders and backlog also witnessed positive growth trends.
Guidance for 2024
For 2024, JBT expects revenues between $1.75 billion and $1.78 billion, indicating year-over-year growth of 6%. The company also anticipates mid-single-digit organic top-line growth and improved margins, driven by supply chain and manufacturing efficiency initiatives.
Update on JBT’s Offer for Marel
John Bean announced an updated offer to acquire Marel hf. at €3.60 per share, aiming to unite two renowned companies and create a leading global food and beverage technology solutions provider. Anticipated benefits include significant cost synergies and additional revenue synergies, driving the potential of the combined company.
Price Performance and Zacks Rank
John Bean’s shares have dipped 6.4% in the past year against the industry’s 5.6% growth. The company currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc., AZZ Inc., and Applied Industrial Technologies. These stocks offer potential opportunities for investors to consider.
Image Source: Zacks Investment Research
