The 10-second takeaway
For the quarter ended July 27 (Q3), Joy Global missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins shrank across the board.
Joy Global reported revenue of $1.39 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.42 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $1.14 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 $1.82. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.90 per share. GAAP EPS of $1.81 for Q3 were 12% higher than the prior-year quarter's $1.62 per share. (The prior-year quarter included $0.01 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 34.3%, 60 basis points worse than the prior-year quarter. Operating margin was 21.6%, 20 basis points worse than the prior-year quarter. Net margin was 13.9%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.46 billion. On the bottom line, the average EPS estimate is $1.94.
Next year's average estimate for revenue is $5.54 billion. The average EPS estimate is $7.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,616 members out of 1,657 rating the stock outperform, and 41 members rating it underperform. Among 339 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 325 give Joy Global a green thumbs-up, and 14 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 $80.06.
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