Joy Global Increases Sales but Misses Estimates Anyway

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Joy Global (NYS: JOY) reported earnings on Dec. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 28 (Q4), Joy Global missed slightly on revenues and missed on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and earnings per share expanded significantly.

Gross margins expanded, operating margins improved, and net margins dropped.

Revenue details
Joy Global reported revenue of $1.3 billion. The 13 analysts polled by S&P Capital IQ expected a top line of $1.4 billion. Sales were 27% higher than the prior-year quarter's $1.0 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.82. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.87 per share on the same basis. GAAP EPS of $1.62 for Q4 were 17% higher than the prior-year quarter's $1.39 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.8%, 30 basis points better than the prior-year quarter. Operating margin was 22.2%, 60 basis points better than the prior-year quarter. Net margin was 12.9%, 110 basis points worse than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $1.2 billion. On the bottom line, the average EPS estimate is $1.35. (There are 12 revenue estimates and 19 EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $5.4 billion. The average EPS estimate is $7.37. (There are 18 revenue estimates and 20 EPS estimates.)

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,566 members out of 1,601 rating the stock outperform, and 36 members rating it underperform. Among 401 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 391 give Joy Global a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Joy Global is outperform, with an average price target of $101.93.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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