Notable Mover: Joy Global, Inc. (NYSE:JOY)

Joy Global, Inc. (NYSE:JOY) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $0.09 per share on revenue of $601.98M. Analysts had been modeling earning per share of $0 with $608.16M in revenue.

Joy Global, Inc. (NYSE:JOY) reported second quarter fiscal 2016 results.

Second Quarter Summary

  • Bookings $681 million, down 9 percent from a year ago
  • Equipment bookings $167 million, up 12 percent from a year ago
  • Service bookings $514 million, down 14 percent from a year ago
  • Net sales $602 million, down 26 percent from a year ago
  • (Loss) Earnings per diluted share from continuing operations $(0.16), compared to $0.57 a year ago
  • Adjusted earnings per diluted share from continuing operations $0.09, compared to $0.64 a year ago
  • Cash from operations $44 million, down $27 million from a year ago

Second Quarter Operating Results

“Despite ongoing challenges in commodity markets, our bookings and financial results in the second quarter were better than expected,” said Ted Doheny, President and Chief Executive Officer. “While markets overall remain subdued, we were able to secure growth-related original equipment bookings in a few markets during the quarter. In addition, a seasonal up-tick in service sales and continued cost reduction initiatives helped drive sequentially improved earnings and continued solid cash generation in the quarter.”

Consolidated bookings in the second quarter totaled $681 million, a decrease of 9 percent versus the second quarter of last year. Original equipment orders increased 12 percent while service orders were down 14 percent compared to the prior year. Current quarter bookings were reduced by $8 million from the impact of foreign currency exchange movements versus the year ago period, a $2 million increase for original equipment and a $10 million decrease for service bookings. After adjusting for foreign currency exchange, orders were down 7 percent compared to the second quarter of last year, with original equipment orders up 10 percent and service orders down 12 percent.

Bookings for underground mining machinery decreased 17 percent in comparison to the second quarter of last year. Original equipment orders decreased 15 percent compared to the prior year, with declines in all regions except in Eurasia, where a longwall system order was received in the current quarter. Service orders decreased 18 percent compared to the prior year, with declines in all regions except Eurasia and Africa. Orders for underground mining machinery were reduced by $7 million from the impact of foreign currency exchange compared to the second quarter of last year.

Bookings for surface mining equipment decreased 1 percent in comparison to the prior year second quarter. Original equipment orders increased 102 percent compared to the prior year. Original equipment orders increased in North America where a multiple electric shovel order was booked in the current quarter with declines in all other regions. Service orders decreased 10 percent compared to the prior year, with declines in all regions except Eurasia and Africa. Orders for surface mining equipment were reduced by $1 million from the impact of foreign currency exchange compared to the second quarter of last year.

Joy Global, Inc. earnings per share showed a decreasing trend of -460.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 47%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -36.5% when sales declined -2.1. It reported -25.7% sales drop, and -127.4% EPS decline in the last quarter.

The stock is trading at $22.76, up 172.87% from 52-week low of $8.35. The stock trades down -40.99% from its peak of $37.5 and % below the consensus price target of $20.82. Its volume clocked up at 3.63 million shares which is lower than the average volume of 3.64 million shares. Its market capitalization currently stands at $2.10B.

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