JBT Corp. (JBT) Tops Q4 EPS by 27c, Revenues Beat; Q1 EPS/Revenue Guidance Below Consensus, Provides FY19 EPS/Revenue Outlook

JBT Corp. (NYSE: JBT) reported Q4 EPS of $1.65, $0.27 better than the analyst estimate of $1.38. Revenue for the quarter came in at $537.3 million versus the consensus estimate of $536.39 million.

Fourth Quarter 2018 Highlights:

• Revenue of $537 million, up 11 percent from the fourth quarter of 2017
• Operating income of $59 million, including $14 million of restructuring expense
• Total segment operating profit of $83 million, a gain of 28 percent from the fourth quarter of 2017
• Diluted earnings per share from continuing operations of $1.34 versus $0.61; Adjusted diluted earnings per share of $1.65 versus $1.10 in the fourth quarter of 2017
• Inbound orders of $476 million, ahead 18 percent; backlog up 14 percent from the fourth quarter of 2017

2019 Outlook:

• Expects 2019 revenue of $1.9 billion
• Anticipates FoodTech operating margins of 13.25 – 14.0 percent; AeroTech operating margins of 12.5 – 13.0 percent
• Projects 2019 earnings per share of $3.90 – $4.10 or $4.20 – $4.40 on an adjusted basis

"We ended 2018 on a strong note, with margins, cash flow, and order rates that exceeded our expectations," said Tom Giacomini, Chairman, President, and Chief Executive Officer. "With a favorable long-term outlook for our end markets, we expect growth to continue in 2019. Operationally, improvements underway enhance our competitive position and support significant margin expansion in 2019 and 2020."

Fourth quarter 2018 revenue increased 11.1 percent from the year-ago period, comprised of 4.6 percent organic growth, 3.2 percent growth from acquisitions, and a 5.6 percent benefit from the new ASC 606 revenue recognition standard, offset by a 2.3 percent unfavorable foreign exchange translation impact. Operating income was $59.1 million in the fourth quarter of 2018, including restructuring expense of $14.2 million. Segment operating profit increased 28 percent year over year with a 200 basis point margin expansion to 15.4 percent.

Diluted earnings per share from continuing operations was $1.34 for the fourth quarter of 2018 compared with $0.61 in the fourth quarter of 2017. Adjusted earnings per share, excluding restructuring expense and charges associated with passage of the \"Tax Cuts and Jobs Act\", was $1.65 compared with $1.10 in the year-ago period. Fourth quarter 2018 earnings per share also included a $0.07 benefit from the transition to ASC 606 and a $0.10 benefit from lower tax rates.

GUIDANCE:

JBT Corp. sees FY2019 EPS of $4.20-$4.40, versus the consensus of $4.32. JBT Corp. sees FY2019 revenue of $1.9 billion, versus the consensus of $1.95 billion.

JBT Corp. sees Q1 2019 EPS of $0.44-$0.48, versus the consensus of $0.60. JBT Corp. sees Q1 2019 revenue of $375-395 million, versus the consensus of $416.46 million.

For earnings history and earnings-related data on JBT Corp. (JBT) click here.

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