The 10-second takeaway
For the quarter ended Oct. 26 (Q4), Joy Global beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins grew.
Joy Global reported revenue of $1.59 billion. The 15 analysts polled by S&P Capital IQ predicted sales of $1.42 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $1.34 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.94. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.92 per share. GAAP EPS of $1.99 for Q4 were 23% higher than the prior-year quarter's $1.62 per share. (The prior-year quarter included -$0.21 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.1%, 70 basis points worse than the prior-year quarter. Operating margin was 20.4%, 230 basis points worse than the prior-year quarter. Net margin was 13.3%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $5.19 billion. The average EPS estimate is $6.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,625 members out of 1,665 rating the stock outperform, and 40 members rating it underperform. Among 355 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 343 give Joy Global a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Joy Global is outperform, with an average price target of $70.00.
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