NYSE$JBTM

JBT Marel Corp. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

JBT reported improved margins and strong cash flow despite a contraction in sales.

JBT Corporation reported second quarter 2020 results, demonstrating resilience amidst the COVID crisis. The company improved margins despite a decline in revenue, bolstered the balance sheet with outstanding free cash flow generation, and benefited from the stability provided by a large and profitable recurring revenue base.

  • Margins expanded despite contraction in sales.
  • Balance sheet strengthened with strong cash flow.
  • Orders expected to improve sequentially, but sales and earnings are anticipated to be lower in Q3 2020.
  • Cost structure adjusted to align with challenging demand, benefiting margins.

Headline financials

Total Revenue

$412M

Previous: $493M-16.6%
EPS (adj)

$1.09

Previous: $1.42-23.2%
Adjusted EBITDA Margin

16.6%

No prior period
Free Cash Flow

$32.5M

Previous: $33.7M-3.6%
Net Income

$32.5M

Previous: $33.7M-3.6%
Operating Income

$47.6M

Previous: $47M+1.3%
Gross Profit

$412M

Previous: $155M+165.5%
Cash & Equivalents

$58M

Previous: $39.1M+48.3%
Total Assets

$1.82B

Previous: $1.91B-4.8%
Stock-Based Comp

-$400K

Previous: $2.1M-119.0%

Revenue & EPS history

JBT · Revenue · Quarterly

$412M

Q2 2020-16.6%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

JBT · $3.8B total across 2 segments · Q4 2025

  • Prepared Food and Beverage
    $2.08B
  • Protein Solutions
    $1.72B

Forward guidance

The Company foresees a sequential decline in revenue and operating profit in the third quarter of 2020.

Tailwinds

  • Expect a sequential pickup in FoodTech and AeroTech orders in the third quarter of 2020.
  • AeroTech, the Company expects a 6 - 8 percent sequential increase in revenue in the third quarter based on typical seasonality.
  • Margins are expected to improve 75 - 100 basis points sequentially at Aerotech.
  • This action is expected to generate permanent run rate benefits of $6 - $7 million by the end of 2021.
  • encouraged by the quality of our sales funnel

Headwinds

  • There continues to be much uncertainty in the marketplace resulting from the pandemic
  • FoodTech revenue is expected to decline 10 - 12 percent sequentially
  • margins approximating first quarter 2020 levels reflecting lower volume and a moderate resumption of curtailed marketing spend for FoodTech
  • Corporate expense is also expected to increase sequentially in the third quarter due to the absence of the adjustment to long-term incentive compensation expense in the second quarter.
  • the Company expects to take restructuring and other charges totaling $8 - $9 million associated with manufacturing capacity rationalizations at FoodTech and AeroTech in the third quarter of 2020

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.2%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+22.4%

Q2 2018

Best reaction

-21.1%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+13.7%+20.8%+8.4%
Q4 2025+0.6%-5.8%-19.8%
Q3 2025+12.1%+13.4%+13.3%
Q1 2025-4.2%+4.9%+10.6%
Q4 2024+15.3%+12.6%+7.4%
Q3 2024+14.8%+17.1%+22.0%
Q2 2024+1.0%-3.6%-7.9%
Q1 2024+1.4%+3.4%+7.2%
Q4 2023-6.0%-4.3%-1.8%
Q3 2023+11.0%+4.9%+11.8%
Q2 2023-7.3%-10.2%-11.1%
Q1 2023-2.2%+1.1%-4.3%
Q4 2022-2.3%-3.7%-8.6%
Q3 2022-8.4%-5.9%-5.3%
Q2 2022-4.3%-1.3%-5.1%
Q1 2022+4.6%+8.4%+10.3%
Q4 2021-21.1%-15.6%-10.5%
Q3 2021+0.3%+2.9%+8.8%
Q2 2021+0.2%+6.9%+1.0%
Q1 2021+3.5%+5.3%+2.8%
Q4 2020+9.7%+13.9%+1.0%
Q3 2020-2.1%-3.1%+31.0%
Q2 2020+4.8%+4.2%+13.3%
Q1 2020-4.9%-13.4%+1.8%
Q4 2019+1.7%-2.8%-43.1%
Q3 2019+1.8%+2.4%+4.5%
Q2 2019-1.6%-11.7%-17.0%
Q1 2019+9.1%+14.1%+2.5%
Q4 2018+6.3%+6.9%+2.7%
Q3 2018-10.8%-11.3%-18.5%
Q2 2018+22.4%+16.4%+20.4%
Q1 2018-16.1%-18.2%-18.1%
Q4 2017-7.8%-8.0%-8.9%
Q3 2017+8.7%+5.9%+10.6%
Q2 2017-1.8%-1.7%-4.9%
Q1 2017-3.4%-2.6%-5.3%
Q4 2016+5.2%+3.8%+3.2%
Q3 2016+3.7%+7.6%+23.6%
Q2 2016-0.5%-0.7%+2.7%
Q1 2016-8.4%
Q4 2015+14.7%
Q3 2015+9.8%
Q2 2015+0.8%
Q1 2015+9.8%
Q4 2014+5.2%
Q3 2014+1.5%
Q2 2014+5.0%
Q1 2014+0.6%
Q4 2013-0.6%
Q3 2013-1.5%
Q2 2013-6.4%
Q1 2013-0.2%
Q4 2012+11.3%
Q3 2012-2.5%
Q2 2012+1.8%
Q1 2011+0.3%
Q1 2012+1.0%
Q4 2009-1.0%
Q4 2011-1.0%
Q3 2011+2.7%
Q3 2010+2.7%
Q2 2010-7.9%
Q2 2011-7.9%
Q4 2010-7.9%
Q1 2010+6.0%

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