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What: Shares of industrial equipment maker Joy Global Inc. (NYSE:JOY) jumped 24.1% in June after earnings results topped expectations.

So what: Fiscal second quarter revenue dropped 26% to $602 million, but the company still made a profit of $0.09 per share on an adjusted basis. That's what was surprising because analysts were expecting earnings of just $0.03 per share; so cost cutting is going much more quickly than expected.

Another encouraging sign was that bookings fell just 9% to $681 million in the quarter, higher than revenue. So, the future might have some growth, despite the company being very close to breakeven on an adjusted basis.

Now what: The mining and energy extraction industries have been hammered in the last couple of years and companies like Joy Global are just trying to adjust their cost structures enough to survive. And if companies can do that they'll have a lot of upside leverage in the case of an industry recovery. That's what investors are seeing now with the small profit and the increase in bookings. I would be skeptical that the recovery could be short lived if earnings falter, but for now we appear to be seeing a bottom in the industrial equipment market.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.