Shares of John Bean Technologies Corporation JBT touched a new 52-week high of $50.34 during its trading session on Dec 2. This apex improved upon the last 52-week high of $49.96 hit on Nov 17.
John Bean Technologies closed the session at $49.92, reflecting a solid year-to-date return of 53.7%. The trading volume for the session was 0.11 million shares. After the company reported better-than-expected results for the third quarter, earnings estimates for 2015 were revised upward, reflecting further potential for this machinery stock.
Growth Drivers
A series of events in the last few months have lifted investors’ confidence in John Bean Technologies. Firstly, the company’s preference for acquisitions has worked in its favor. In third-quarter 2015, the company acquired shares of Stork Food & Dairy Systems, anticipating earnings accretion of 5 cents per share in 2016 and 10−15 cents per share in 2017. In Oct 2015, the company added A&B Process Systems to its portfolio, expecting to boost its earnings growth by 10−15 cents per share in 2016 and 20−25 cents per share in 2017.
Secondly, John Bean Technologies’ better-than-expected results for third quarter kept its earnings streak alive, with an average earnings beat of 18.4% for the last four quarters. For the Sep-ending quarter, the company’s earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 37 cents as well as came ahead of the year-ago tally of 36 cents. Revenues grew 12.4% year over year or 20.5% on a constant currency basis.
In 2015, John Bean Technologies expects to gain from organic revenue growth of 8% and acquisition benefits of 9%, partially offset by 7% adverse impact from foreign currency translation. Total revenue is predicted to grow 9−10% as against 7% expected earlier. Earnings are projected within $1.75−$1.80 per share versus the previous expectation of $1.70−$1.80.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for John Bean Technologies increased 1.7% to $1.79 per share for 2015; while the same grew 2.4% to $2.10 for 2016. These estimates represent year-over-year growth of 14.7% for 2015 and 17% for 2016.
With a market capitalization of $1.5 billion, John Bean Technologies currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include Encore Wire Corp. WIRE, iRobot Corporation IRBT and Unifi Inc. UFI. While Encore Wire sports a Zacks Rank #1 (Strong Buy), both iRobot Corporation and Unifi carry a Zacks Rank #2.
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