Joy Global Earnings: Here’s Why the Stock is Falling 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 1.96%.
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Joy Global Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.2% to $1.73 in the quarter versus EPS of $2.04 in the year-earlier quarter.

Revenue: Decreased 11.75% to $1.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $1.73 per share. By that measure, the company beat the mean analyst estimate of $1.56. It beat the average revenue estimate of $1.28 billion.

Quoting Management: “This quarter again reflected strong execution against continued market headwinds,” said Mike Sutherlin, President and Chief Executive Officer. “Revenues were down 12 percent, in line with expectations, and operating profit margin remained strong at nearly 21 percent due to operational efficiencies and cost reduction efforts. Our original equipment order stream included a longwall system for U.S. coal and, as expected, our aftermarket orders improved sequentially. Even though the overall order rate continues to reflect soft market conditions, the base order rate, before major projects, has been consistent over the last five quarters. We see this as providing market stability until the current commodity supply surplus is worked off.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 32.06% from $1.31 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 $1.58 to a profit $1.55. For the current year, the average estimate has moved down from a profit of $6.21 to a profit of $6.15 over the last ninety days.

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