Joy Global Inc. (NASDAQ:JOYG) posted a downside fiscal first quarter earnings
report and updated its FY 2011 outlook today. The Company reported first fiscal
quarter results, posting net income of $102.2 million or 96 cents a share during
the quarter, up 34.12% from net income of $76.2 million or 73 cents a share, in
the year-ago period, below street consensus of $1.07 a share. This shortfall
versus consensus is due to seasonally low production rates. Revenue rose 19%
year over year to $870 million from $729 million, below the analysts' estimate
of $881 million. The miss versus consensus was driven by lower-than-expected
revenues and operating margins in both Underground and Surface segments.
Product development, selling and administrative costs rose 20% to $132.1
million. Gross Margins of 32.8% were down from the fourth quarter of 2010, but
170 basis points ahead of first quarter of 2010. Operating margins in
Underground were 18.7% and Surface margins were 19.7%, both consistent with the
historical high-teens first quarter ranges, yet also likely below consensus
estimates. Overall operating margins came in at 17.7%, an increase of 160
basis points year over year. Bookings during the quarter were up 52% year over
year to $1.2 billion from a year ago. Backlog increased in the first quarter to
$2.2 billion. Total comparable sales for the second quarter rose 7%. The Company
increased its fiscal 2011 earnings guidance to range of $5.10 to $5.40 a share
from previous forecast of $5.00 to $5.30 a share, in line with consensus of
$5.31. The company also raised its revenue outlook to range of $4.0 billion to
$4.2 billion from previous range of $3.9 billion to $4.1 million, in line with
consensus of $4.06 billion. The outlook is driven by an increase in capital
expenditure at major customers in 2011. The Company expects customer capital
expenditure to be up over 20% year over year. Shares of a manufacturer and
servicer of mining equipment for the extraction of coal and other minerals, and
ores went down by 3.08% or $2.99 to $94.01 with volume of 3.31 million shares
compared to the daily average of 1.38 million shares. The market capital of the
stock is $10 billion with shares outstanding of $104.59 million. The 52 week
range of the stock is $44.25-$100.58. The Company's equipment is used in
mining regions throughout the world to mine coal, copper, iron ore, oil sands
and other minerals. Its underground mining machinery segment (Joy Mining
Machinery or Joy) is a manufacturer of underground mining equipment for the
extraction of coal and other bedded minerals and offers service locations near
mining regions worldwide. Disclaimer: The assembled information distributed by
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