The 10-second takeaway
For the quarter ended Jan. 27 (Q1), Joy Global met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margin contracted, operating margin grew, and net margin expanded.
Joy Global logged revenue of $1.14 billion. The 11 analysts polled by S&P Capital IQ hoped for sales of $1.15 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $869.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.26. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.35 per share on the same basis. GAAP EPS of $1.33 for Q1 were 39% higher than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.0%, 80 basis points worse than the prior-year quarter. Operating margin was 18.8%, 110 basis points better than the prior-year quarter. Net margin was 12.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.40 billion. On the bottom line, the average EPS estimate is $1.94.
Next year's average estimate for revenue is $5.52 billion. The average EPS estimate is $7.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 436 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 424 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 $99.65.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Joy Global. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.