
Joy Global (JOY) Stock Rallies on Q2 Earnings Beat
NEW YORK (TheStreet) -- Shares of Joy Global (JOY) are jumping 16.11% to $19.39 on heavy trading volume midday Thursday after the Milwaukee-based company reported better-than-expected earnings for the 2016 fiscal second quarter.
Before today's market open, the mining equipment manufacturer reported adjusted earnings of 9 cents per share, topping analysts' expectations for break-even earnings per share.
Revenue for the period was $602 million, below Wall Street's estimates of $607.7 million.
Joy said revenue fell 25.7% and was impacted by continued spending cuts by its customers amid a commodities slump, Reuters noted.
Total bookings declined 9% to $681 from last year during the quarter.
"Despite ongoing challenges in commodity markets, our bookings and financial results in the second quarter were better than expected," CEO Ted Doheny said in a statement.
Additionally, Joy cautioned that its full-year results would be at the lower end of its previous outlook for adjusted earnings per share between 10 cents and 50 cents on revenue of $2.4 billion to $2.6 billion.
Analysts are modeling earnings of 18 cents per share on revenue of $2.47 billion.
The mining industry continues to face significant headwinds as commodity markets rebalance, the company said.
"While commodity markets move closer to rebalancing, most major mining companies continue to face strained cash flows and high levels of debt, both of which continue to negatively impact near-term order rates," Joy Global stated.
About 5.51 million of the company's shares were traded so far today vs. its average volume of 3.29 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, 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.
You can view the full analysis from the report here: JOY










