Analyst Note
| Joshua Aguilar |Narrow-moat-rated JBT's full-year results were broadly in line with our expectations. At $1.73 billion, full-year revenue marginally exceeded our expectations of $1.72 billion, even as sales declined just over 11.2%. Moreover, full-year adjusted EPS of $3.94 came in negligibly above our expectations of $3.91 per share. Despite this dynamic, full-year segment operating margins came in about 20 basis points below what we had in our model. Nonetheless, we’re not concerned with these developments, particularly as full-year free cash flow outperformed. Of course, that’s unsurprising in a recession, and we expect most of these working capital tailwinds will reverse in 2021 as working capital tends to be procyclical.