After John Bean Technologies Corporation’s (NYSE:JBT) earnings announcement in December 2018, the consensus outlook from analysts appear fairly confident, as upcoming earnings growth is expected to be 23% next year, similar to the range of average earnings growth for the past five years of 23% per year. Presently, with latest-twelve-month earnings at US$104m, we should see this growing to US$128m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Can we expect John Bean Technologies to keep growing?
Over the next three years, it seems the consensus view of the 9 analysts covering JBT is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of JBT’s earnings growth over these next few years.
By 2022, JBT’s earnings should reach US$175m, from current levels of US$104m, resulting in an annual growth rate of 17%. EPS reaches $5.45 in the final year of forecast compared to the current $3.27 EPS today. In 2022, JBT’s profit margin will have expanded from 5.4% to 8.4%.
Future outlook is only one aspect when you’re building an investment case for a stock. For John Bean Technologies, there are three important factors you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is John Bean Technologies worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether John Bean Technologies is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of John Bean Technologies? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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