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Joy Global Beats Analyst Expectations

Milwaukee-based Joy Global (NYSE: JOY  ) shares had slid more than 3% in Wednesday trading, despite the mining equipment manufacturer reporting earnings that beat analyst expectations on both the top and bottom lines.

Joy announced today that fiscal Q3 2013 earnings came in at $1.71 per share, down 6% in comparison to last year's Q3, but well ahead of analysts' predicted $1.37 per share. Q3 sales of $1.3 billion were likewise lower than last year's $1.4 billion, but greater than the $1.18 billion in revenues that analysts had expected Joy to report.

In the company's press release, Joy CEO Mike Sutherlin characterized his company's results as demonstrating "strong operational efficiencies" in a "weak market" for mining equipment. "The market has become even more challenging, with declines in order rates for both original equipment and aftermarket," he said, noting that "the supply surplus that was centered in the U.S. coal market last year has migrated to the international markets," but that international markets are now also "going through similar aftermarket corrections to that in the U.S."

Worse, for analysts who love consistency and loathe uncertainty, Sutherlin warned that uncertainty around the timing of original equipment orders has increased and as a result, "we expect the order rate to take a step down from our previous outlook until both demand and commodity pricing improve."

Looking forward, Sutherlin predicted that Joy Global earnings will range from $5.60 to $5.80 per share this year on revenues of $4.9 billion to $5 billion, reiterating prior guidance, but that afterward annual revenues could decline to no more than $4 billion, and remain there for some time. 

The Board of Directors also authorized a repurchase of up to $1 billion of shares over the next three years.


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9/30/2016 4:01 PM
JOY $27.74 Up +0.13 +0.47%
Joy Global CAPS Rating: ***