On Thursday, Aug. 31, mining equipment specialist Joy Global (NASDAQ:JOYG) released Q3 2006 earnings for the period ended July 29.
- If the results look too good to be true, try backing out an unexpected tax reversal of $111 million, or $0.90 per diluted share, from reported earnings. That puts the earnings at $0.63 per diluted share -- more realistic, but still impressive.
- Margins did not need the tax boost in order to look good; the rose nicely across the board.
- More proof of solid results comes from strong cash flows.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$613 |
$599 |
$513 |
16.7% |
|
Net Profit |
-- |
$189 |
$31 |
512.6% |
|
EPS |
$0.58 |
$1.53 |
$0.25 |
512% |
|
Diluted Shares |
123 |
123 |
(0.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
31.55% |
28.31% |
3.24 |
|
Operating Margin |
18.32% |
14.09% |
4.23 |
|
Net Margin |
31.50% |
6.00% |
25.5 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$102 |
$70 |
46.2% |
|
Accounts Rec. |
$418 |
$314 |
33% |
|
Inventory |
$623 |
$539 |
15.6% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$340 |
$311 |
9.5% |
|
Long-Term Debt |
$77 |
$27 |
183.5% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash from Ops. |
$51 |
$8 |
538.3% |
|
Capital Expenditures |
$8 |
$10 |
(17.4%) |
|
Free Cash Flow |
$43 |
($2) |
N/A |
Find out why Fools always follow the money.
Related Companies:
- Caterpillar (NYSE:CAT)
- Metso (NYSE:MX)
- Bucyrus International (NASDAQ:BUCY)
- Terex (NYSE:TEX)
- Mitsui (NASDAQ:MITSY)
- CONSOL Energy (NYSE:CNX)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: The Income Statement
- Foolish Fundamentals: The Cash Flow Statement
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .
