Joy Global Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Joy Global Inc. (NYSE:JOY) will unveil its latest earnings on Wednesday, August 29, 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 net income of $1.90 per share, a rise of 23.4% 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 $2.04. 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 23.4% compared to last year’s $7.27.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported profit of $2.04 per share versus a mean estimate of net income of $1.95 per share. In the first quarter, the company missed estimates by 9 cents.

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A Look Back: In the second quarter, profit rose 31.9% to $213.6 million ($2 a share) from $162 million ($1.52 a share) the year earlier, exceeding analyst expectations. Revenue rose 45% to $1.54 billion from $1.06 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.43 billion in revenue this quarter, a rise of 25.4% from the year-ago quarter. Analysts are forecasting total revenue of $5.56 billion for the year, a rise of 26.4% from last year’s revenue of $4.4 billion.

Analyst Ratings: With 11 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.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 34.2% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 17.8% in the fourth quarter of the last fiscal year and 39.2% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.68 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. The company regressed in this liquidity measure from 1.81 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 4.2% to $3.29 billion while liabilities rose by 2.9% to $1.96 billion.

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

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