John Bean Technologies Corporation's (NYSE:JBT) released its most recent earnings update in December 2018, which signalled that the business gained from a strong tailwind, eventuating to a double-digit earnings growth of 27%. Today I want to provide a brief commentary on how market analysts view John Bean Technologies's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for John Bean Technologies
Market analysts' prospects for the upcoming year seems buoyant, with earnings expanding by a robust 23%. This growth seems to continue into the following year with rates reaching double digit 46% compared to today’s earnings, and finally hitting US$175m by 2022.
Even though it is helpful to be aware of the growth year by year relative to today’s value, it may be more insightful to determine the rate at which the business is moving on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of John Bean Technologies's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 17%. This means, we can expect John Bean Technologies will grow its earnings by 17% every year for the next couple of years.
Next Steps:
For John Bean Technologies, there are three important aspects you should look at:
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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.
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Valuation: What is JBT 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 JBT is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JBT? 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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