Latest news with #JohnBean
Yahoo
04-08-2025
- Business
- Yahoo
John Bean (NYSE:JBTM) Reports Upbeat Q2, Full-Year Outlook Slightly Exceeds Expectations
Food processing and aviation equipment manufacturer John Bean (NYSE:JBT) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 132% year on year to $934.8 million. The company's full-year revenue guidance of $3.7 billion at the midpoint came in 1.3% above analysts' estimates. Its non-GAAP profit of $1.49 per share was 16.4% above analysts' consensus estimates. Is now the time to buy John Bean? Find out in our full research report. John Bean (JBTM) Q2 CY2025 Highlights: Revenue: $934.8 million vs analyst estimates of $891.2 million (132% year-on-year growth, 4.9% beat) Adjusted EPS: $1.49 vs analyst estimates of $1.28 (16.4% beat) Adjusted EBITDA: $156.2 million vs analyst estimates of $134.3 million (16.7% margin, 16.3% beat) Adjusted EPS guidance for the full year is $5.80 at the midpoint, beating analyst estimates by 0.8% Operating Margin: 5.2%, down from 6.7% in the same quarter last year Free Cash Flow Margin: 8.6%, up from 3.2% in the same quarter last year Backlog: $1.4 billion at quarter end Market Capitalization: $6.90 billion "We are pleased with our second quarter results, which exceeded our guidance, reflecting our ability to navigate a dynamic operating environment and manage the integration of two global businesses," said Brian Deck, Chief Executive Officer. Company Overview Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE:JBT) designs, manufactures, and sells equipment used for food processing and aviation. Revenue Growth A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, John Bean's sales grew at a mediocre 7.3% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. John Bean's annualized revenue growth of 27.9% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, John Bean reported magnificent year-on-year revenue growth of 132%, and its $934.8 million of revenue beat Wall Street's estimates by 4.9%. Looking ahead, sell-side analysts expect revenue to grow 37.8% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin John Bean was profitable over the last five years but held back by its large cost base. Its average operating margin of 7% was weak for an industrials business. This result is surprising given its high gross margin as a starting point. Analyzing the trend in its profitability, John Bean's operating margin decreased by 6.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. John Bean's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q2, John Bean generated an operating margin profit margin of 5.2%, down 1.5 percentage points year on year. Since John Bean's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. John Bean's EPS grew at a weak 3% compounded annual growth rate over the last five years, lower than its 7.3% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of John Bean's earnings can give us a better understanding of its performance. As we mentioned earlier, John Bean's operating margin declined by 6.1 percentage points over the last five years. Its share count also grew by 63.1%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For John Bean, its two-year annual EPS growth of 10.1% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q2, John Bean reported adjusted EPS at $1.49, up from $1.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects John Bean's full-year EPS of $5.66 to grow 18.3%. Key Takeaways from John Bean's Q2 Results We were impressed by how significantly John Bean blew past analysts' EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 3% to $137.60 immediately after reporting. John Bean may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-08-2025
- Business
- Yahoo
What To Expect From John Bean's (JBTM) Q2 Earnings
Food processing and aviation equipment manufacturer John Bean (NYSE:JBT) will be announcing earnings results this Monday afternoon. Here's what investors should know. John Bean beat analysts' revenue expectations by 2.6% last quarter, reporting revenues of $854.1 million, up 118% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' EBITDA estimates and EPS guidance for next quarter exceeding analysts' expectations. Is John Bean a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting John Bean's revenue to grow 122% year on year to $891.2 million, a reversal from the 5.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. John Bean has missed Wall Street's revenue estimates five times over the last two years. Looking at John Bean's peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Luxfer delivered year-on-year revenue growth of 4.3%, beating analysts' expectations by 5.9%, and GE Aerospace reported revenues up 23.4%, topping estimates by 6.5%. Luxfer's stock price was unchanged after the resultswhile GE Aerospace was down 1.1%. Read our full analysis of Luxfer's results here and GE Aerospace's results here. Investors in the general industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. John Bean is up 7.4% during the same time and is heading into earnings with an average analyst price target of $129.40 (compared to the current share price of $132.86). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
08-04-2025
- Business
- Yahoo
3 Reasons to Sell JBTM and 1 Stock to Buy Instead
Since October 2024, John Bean has been in a holding pattern, posting a small return of 3.7% while floating around $102.36. However, the stock is beating the S&P 500's 10.6% decline during that period. Is there a buying opportunity in John Bean, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Despite the relative momentum, we don't have much confidence in John Bean. Here are three reasons why there are better opportunities than JBTM and a stock we'd rather own. Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE:JBTM) designs, manufactures, and sells equipment used for food processing and aviation. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. John Bean struggled to consistently generate demand over the last five years as its sales dropped at a 2.5% annual rate. This was below our standards and signals it's a low quality business. In addition to reported revenue, organic revenue is a useful data point for analyzing General Industrial Machinery companies. This metric gives visibility into John Bean's core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, John Bean's organic revenue averaged 2.4% year-on-year growth. This performance was underwhelming and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for John Bean, its EPS declined by 8% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. John Bean doesn't pass our quality test. Following its recent outperformance amid a softer market environment, the stock trades at $102.36 per share (or 0.9× forward price-to-sales). The market typically values companies like John Bean based on their anticipated profits for the next 12 months, but there aren't enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. We'd recommend looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
