Founded in 1884, JBT Corporation (JBT - Free Report) is a global technology solutions provider to the food processing and air transportation industries. It was spun-off from FMC Technologies in 2008.
 
The Chicago based company operates through two segments--JBT FoodTech and JBT AeroTech. The FoodTech segment produces freezer, processing and related solutions while the AeroTech segment sells critical equipment and services to domestic and international air transportation customers.

Their large installed base of food processing systems and airport equipment provides the company with strong market positions within both these product lines.

Excellent Quarterly Results 

The company reported Q3 results on October 26. Revenues of $349.6 million were up 28% from the same quarter a year ago, while earnings of $0.69 per share were up from $0.43. Adjusted earnings of $0.68 per share were significantly ahead of the Zacks Consensus Estimate of $0.53.

They have been consistently beating for the last 14 quarters. For the last four quarters, they delivered an average quarterly positive surprise of 18%.

Upgraded Guidance

After strong results, the management increased their full-year revenue growth forecast to ~20%, 7% organic growth and 13% growth from acquisitions.

They now expect adjusted earnings of $2.30 to $2.40 per share for 2016 up from $1.88 in 2015.

Rising Estimates 

After strong results, analysts have been raising their estimates for the company. Zacks Consensus Estimates for current and the next fiscal year have gone up to $2.38 per share and $2.94 per share respectively, from $2.33 and $2.82, before the results. Rising estimates sent the stock to a Zacks Rank # 1 (Strong Buy).

Macro Factors Driving Growth

Global middle class is expected to double by 2030. With their rising income, consumers in emerging markets, particularly in Asia, would continue to increase their purchases of value-added nutritional food. Further, the food industry continues to consolidate and with their global footprint and strong position in China, JBT looks well positioned to benefit from these trends.

Growth in global aviation markets offers attractive opportunities to their Aerotech segment as their investments in new product development are beginning to pay off.

The Zacks Industry Rank of 26 out of 265 (top 10%) also suggests outperformance in the short-to-medium term.

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