Please ensure Javascript is enabled for purposes of website accessibility

Acquisitions Fed John Bean Technologies' Strong Second-Quarter Showing

By Matthew DiLallo – Jul 27, 2016 at 10:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The purveyor of technology solutions to the food and beverage industry -- as well as air transport customers -- is also raising its full-year guidance.

Image source: Getty Images.

A steady diet of acquisitions over the past year is paying off for John Bean Technologies (JBT 3.49%). Those transactions provided more than half of the company's revenue growth during the quarter, as well as giving a substantial boost to its bottom line. That acquisition-driven boost, when combined with its already robust organic growth, resulted in better-than-expected performance, which is now leading the company to raise its full-year guidance. 

John Bean Technologies results: The raw numbers


Q2 2016 Actuals

Q2 2015 Actuals

Growth (YOY)


$328.8 million

$254.6 million


Adjusted net income

$20.1 million

$14.4 million


Adjusted EPS




YOY = year over year. Data source: John Bean Technologies.

What happened with John Bean Technologies this quarter? 

Both of its segments contributed to the strong showing:

  • John Bean's FoodTech segment was the key driver of revenue growth, with its revenue up 39.6% year over year to $228.8 million thanks to robust protein equipment sales. Those sales drove equally hardy growth in that segment's operating profit, which was up 37.8% to $31 million.
  • The company's AeroTech segment was solid, with revenue rising 10.7% to $100.5 million thanks to strong military sales and a favorable product mix. Those two factors drove even higher operating profit growth, which was up 37.3% to $11.4 million.
  • Overall, margins expanded by 80 basis points, pushing the company's segment operating profit margin to 12.9%, providing the additional boost to the bottom line.

What management had to say 

CEO Tom Giacomini commented on the company's quarter by saying, "JBT continued to capture the benefits of our Next Level strategy and investments, translating to robust sales growth and improved profitability." One part of the company's three-prong Next Level strategy is to grow via needle-moving acquisitions. As its second-quarter results testify, the company is doing just that.

That should come as no surprise. For example, when the company acquired Stork Food & Dairy Systems last July, it fully expected it to deliver a $0.05-per-share boost to the bottom line this year. Meanwhile, October's purchase of A&B Process Systems was expected to not only add $100 million to the top line but boost profitability by $0.10 to $0.15 per share in 2016. Clearly, its new additions are fitting in quite well and performing as expected.

Looking forward 

Thanks to John Bean's strong performance through the first half of the year, the company is raising its full-year guidance. It now expects adjusted earnings to be in the range of $2.25 to $2.35 per share, which is up from its prior guidance of $2.15 to $2.30 per share and well above the $1.88 per share it earned last year. Furthermore, the company expects revenue to grow by 16%, with acquisitions accounting for 10% of that rate.

Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends John Bean Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

John Bean Technologies Stock Quote
John Bean Technologies
$91.86 (3.49%) $3.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.