Joy Global Inc. (NASDAQ:JOYG) Reports Weak 1Q11 & Raised FY 2011 Outlook

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 epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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