NYSE$JBTM

JBT Marel Corp. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

JBT Corporation's third quarter results were reported, showing a decrease in revenue but a sequential increase in orders at FoodTech and AeroTech.

JBT Corporation reported a revenue of $419 million for the third quarter of 2020, a 14 percent decrease year-over-year. The company's earnings per share was $0.54, or $0.83 as adjusted. Despite the revenue decline, orders increased sequentially by 18% at FoodTech and 35% at AeroTech. The company generated $140 million in free cash flow in the first three quarters of 2020.

  • Revenue of $419 million and earnings per share of $0.54 or $0.83 as adjusted.
  • Debt reduction continued from strong cash flows.
  • Orders increased sequentially by 18% at FoodTech and 35% at AeroTech.
  • Management succession costs of $3.5 million were incurred.

Headline financials

Total Revenue

$419M

Previous: $489M-14.3%
EPS (adj)

$0.83

Previous: $1.28-35.2%
Adjusted EBITDA Margin

14.2%

Previous: 15.5%-8.4%
Free Cash Flow

$17.2M

Previous: $33.5M-48.7%
Net Income

$17.2M

Previous: $33.5M-48.7%
Operating Income

$28.3M

Previous: $48.6M-41.8%
Gross Profit

$419M

Previous: $148M+184.0%
Cash & Equivalents

$50.6M

Previous: $49.1M+3.1%
Total Assets

$1.81B

Previous: $1.92B-5.6%
Stock-Based Comp

-$1.2M

Previous: $2.5M-148.0%

Revenue & EPS history

JBT · Revenue · Quarterly

$419M

Q3 2020-14.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
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 expects FoodTech revenue growth of 3 - 5 percent sequentially in the fourth quarter of 2020 with operating margins of 13 - 14 percent and adjusted EBITDA margins in the 18 - 19 percent range. At AeroTech, the Company expects a 7 - 8 percent sequential decline in fourth quarter revenue with operating margins of approximately 10 percent and adjusted EBITDA margins in the 11 - 12 percent range. Based on these forecasts, earnings per diluted share guidance for the fourth quarter is $0.75 - $0.85 on a GAAP basis and $0.80 - $0.90 on an adjusted basis.

Tailwinds

  • FoodTech revenue growth of 3 - 5 percent sequentially
  • FoodTech operating margins of 13 - 14 percent
  • FoodTech adjusted EBITDA margins in the 18 - 19 percent range
  • Earnings per diluted share guidance for the fourth quarter is $0.75 - $0.85 on a GAAP basis
  • Adjusted earnings per share from continuing operations $0.80 - $0.90

Headwinds

  • AeroTech, the Company expects a 7 - 8 percent sequential decline in fourth quarter revenue
  • AeroTech operating margins of approximately 10 percent
  • AeroTech adjusted EBITDA margins in the 11 - 12 percent range
  • Corporate expense is expected to be approximately $14 million
  • Interest expense is forecast at $4.5 million with a tax rate of 25 percent.

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 Q3 2020

Historical avgQ3 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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