John Bean Technologies Corporation Just Released Its Yearly Results And Analysts Are Updating Their Estimates
The full-year results for John Bean Technologies Corporation (NYSE:JBT) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of US$1.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.8% to hit US$4.02 per share. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
View our latest analysis for John Bean Technologies
After the latest results, the seven analysts covering John Bean Technologies are now predicting revenues of US$2.04b in 2020. If met, this would reflect a satisfactory 4.7% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to surge 27% to US$5.14. Before this earnings report, analysts had been forecasting revenues of US$2.04b and earnings per share (EPS) of US$5.14 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$117, suggesting that the company has met expectations in its recent result. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values John Bean Technologies at US$140 per share, while the most bearish prices it at US$96.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await John Bean Technologies shareholders.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. It's pretty clear that analysts expect John Bean Technologies's revenue growth will slow down substantially, with revenues next year expected to grow 4.7%, compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.5% next year. So it's pretty clear that, while John Bean Technologies's revenue growth is expected to slow, it's still expected to grow faster than the market itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that John Bean Technologies's revenues are expected to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on John Bean Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for John Bean Technologies going out to 2021, and you can see them free on our platform here.
You can also view our analysis of John Bean Technologies's balance sheet, and whether we think John Bean Technologies is carrying too much debt, for free on our platform here.
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