Joy Global Lifts Full-Year Guidance - TheStreet

Joy Global Lifts Full-Year Guidance

Joy Global raised its full-year guidance above expectations as it reported better-than-expected second-quarter earnings.
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MILWAUKEE. (TheStreet) -- Joy Global (JOYG) raised its full-year guidance above expectations as it reported better-than-expected second-quarter earnings.

The company expects full-year revenue to be between $3.3 billion and $3.4 billion, up from previous guidance of $2.8 billion to $3 billion, and earnings of between $3.85 and $4 a share, up from the previous guidance of $2.85 to $3.05 a share. Analysts forecasted earnings of $3.11 a share on revenue of $3.06 billion.

Joy Global said it's especially important that aftermarket order rates are improving because they are indicative of current and near-term production increases. The company, however, said there signs that demand growth is beginning to moderate in China and that the most concerning macro factor it's seeing right now is the resource super tax being proposed by Australia.

For the second quarter, the company reported net income of $120 million, or $1.15 a share, compared with $121 million, or $1.17 a share. the previous year. This included a $2 million pre-tax reduction in interest expense.

Net sales for the quarter fell 3% to $896 million from $924 million a year ago.

Analysts expected earnings of 77 cents a share on revenue of $754.8 million.

New orders for the quarter were 43% higher; underground original equipment orders were up 52%; and aftermarket orders in the underground equipment business were up 41%. All regions showed gains, with order rate improvement returning to North America.

-- Reported by Andrea Tse in New York

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