Joy Global Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Joy Global Inc. (NYSE:JOY) will unveil its latest earnings on Wednesday, December 12, 2012. Joy Global is a manufacturer and servicer of mining equipment for the extraction of coal and other minerals and ores. The equipment is used in the mining regions globally to mine coal, copper, iron ore, oil sands, and other minerals.

Joy Global Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.90 per share, a rise of 4.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.91. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.90 during the last month. Analysts are projecting profit to rise by 20.5% versus last year to $7.10.

Past Earnings Performance: Last quarter, the company fell short of estimates by 9 cents, coming in at net income of $1.79 per share against a mean estimate of profit of $1.90. The company topped expectations in the second quarter.

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A Look Back: In the third quarter, profit rose 11.8% to $193.5 million ($1.81 a share) from $173.1 million ($1.62 a share) the year earlier, but fell short analyst expectations. Revenue rose 22.2% to $1.39 billion from $1.14 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.42 billion in revenue this quarter, a rise of 6% from the year-ago quarter. Analysts are forecasting total revenue of $5.49 billion for the year, a rise of 24.8% from last year’s revenue of $4.4 billion.

Analyst Ratings: With 13 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 31.3% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 39.2% in the first quarter and 31.9% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.71 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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