NEW YORK (TheStreet) -- Shares of Joy Global (JOY) were down in pre-market trading on Thursday as the company reported lower-than-expected fiscal 2016 third quarter results before today's opening bell.
Joy Global posted adjusted earnings of 10 cents per share, below Wall Street's expected 12 cents per share. Revenue fell 26% year-over-year to $587 million, missing analysts' projected $605 million in revenue.
For the 2015 third quarter, the Milwaukee-based mining machine maker reported adjusted earnings of 54 cents per share on revenue of $792.2 million.
Joy Global CEO Ted Doheny said the company will no longer provide a full-year outlook on a quarterly basis as a result of its pending acquisition by Komatsu America, a subsidiary of Komatsu (KMTUY). The deal is valued at approximately $3.7 billion.
The company saw an $87 million decrease in operating income year-over-year as a result of lower sales volumes, unfavorable product mix, lower manufacturing absorption and merger costs, among other factors.
"While the recent increase in certain commodity prices is positive, the outlook remains tepid and the financial condition of our customers is challenged, which will continue to impact both the timing and level of our incoming orders through 2017," Doheny said in a statement. "In light of persistent difficult market conditions, we remain focused on reducing our cost base...and actively monetizing non-core assets."
Additionally, bookings declined 17% year-over-year to $527 million during the 2016 third quarter.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Joy Global as a Sell with a ratings score of D. This is driven by a number of negative factors, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here:
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