Joy Global Earnings: Here’s Why Shares are Down Now

Joy Global Inc(NYSE:JOY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.59%.

Joy Global Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.59% to $1.7 in the quarter versus EPS of $1.82 in the year-earlier quarter.

Revenue: Decreased 4.91% to $1.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Joy Global Inc reported adjusted EPS income of $1.7 per share. By that measure, the company beat the mean analyst estimate of $1.37. It beat the average revenue estimate of $1.18 billion.

Quoting Management: “Once again, the quarter’s results demonstrate strong operational efficiencies and weak market conditions,” said Mike Sutherlin, President and Chief Executive Officer. “The market has become even more challenging, with declines in order rates for both original equipment and aftermarket. The supply surplus that was centered in the U.S. coal market last year has migrated to the international markets, and they are now going through similar aftermarket corrections to that in the U.S. Based on the U.S. experience, we expect this to create headwinds for most of the next year. Although original equipment orders have always been lumpy, the uncertainty around their timing has increased. A select number of projects are continuing to move forward, but at a measured pace so they do not get ahead of the market. As a result, we expect the order rate to take a step down from our previous outlook until both demand and commodity pricing improve, but at the same time we expect the run rate to be above that of the current quarter.”

Key Stats (on next page)…

Revenue decreased 2.93% from $1.36 billion in the previous quarter. EPS decreased 1.73% from $1.73 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.68 to a profit $1.43. For the current year, the average estimate has moved down from a profit of $6.11 to a profit of $5.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)