Joy Global reports 37% drop in profit

The consensus estimates called for revenues of $3.29 billion and EPS of $2.43 before this report.

Compared to other peers in the Farm & Construction Machinery sector, Joy Global hasn’t performed in terms of quarterly revenue growth year over year at -0.13 vs. the industry average of 0.20.

If we break down the analyst ratings into a simplified scale, Joy Global Inc.

Analysts surveyed by Thomson Reuters had expected earnings of 61 cents a share and revenue of $799 million. Joy Global, Inc. has dropped 42.7% during the last 3-month period.

Excluding items, the company’s adjusted earnings slipped to $0.54 per share from $0.80 per share. (NYSE:JOY) which led to swings in the share price. The shares opened for trading at $23.9 and hit $24.35 on the upside, eventually ending the session at $24.22, with a gain of 0.87% or 0.21 points. Three investment analysts have rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the stock. Thomson Reuters had a consensus analyst price target of around $41.09 before the results were announced. When adjusting for foreign currency exchange, sales were down 4 percent compared to the third quarter of a year ago with original equipment sales down 15 percent and service sales flat. Also, Director Richard B. Loynd purchased 5,000 shares of the business’s stock in a transaction dated Monday, June 8th. The price per share was $38.51 and the total amount of the disclosed transaction was $192,550.The Insider information was disclosed with the Securities and Exchange Commission in a Form 4 filing. The disclosure for this purchase can be found here.

Joy Global has cut jobs and lowered production in response to a depressed mining equipment market and its 10th consecutive quarter of declining revenue. The Company’s equipment can be used in leading mining regions throughout the whole world to copper mine coal, iron ore, oil sands, gold and other minerals. The Companys surface mining equipment segment (P&H Mining Equipment) is a producer of surface mining equipment for the extraction of ores and minerals and provides operational support for many types of equipment used in surface mining.

source : http://www.bulletinleader.com/joy-global-reports-37-drop-in-profit/60630/