The 10-second takeaway
For the quarter ended April 26 (Q2), Joy Global beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Gross margins increased, operating margins shrank, net margins contracted.
Joy Global logged revenue of $1.36 billion. The 15 analysts polled by S&P Capital IQ looked for revenue of $1.28 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $1.54 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 $1.73. The 20 earnings estimates compiled by S&P Capital IQ anticipated $1.57 per share. Non-GAAP EPS of $1.73 for Q2 were 15% lower than the prior-year quarter's $2.04 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.) GAAP EPS of $1.69 for Q2 were 16% lower than the prior-year quarter's $2.00 per share. (The prior-year quarter included -$0.04 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 33.2%, 10 basis points better than the prior-year quarter. Operating margin was 20.5%, 130 basis points worse than the prior-year quarter. Net margin was 13.3%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.23 billion. On the bottom line, the average EPS estimate is $1.54.
Next year's average estimate for revenue is $5.05 billion. The average EPS estimate is $6.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,615 members out of 1,652 rating the stock outperform, and 37 members rating it underperform. Among 319 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 309 give Joy Global a green thumbs-up, and 10 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 $72.24.
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