The analyst firm lowered its 2015 EPS estimates for the mining machinery maker to $3.52 a share from of $3.71 a share. Jefferies now expects Joy Global to report earnings of $4.02 a share for 2016, down from its previous estimates of $4.06 a share.
"While EPS may be near a cycle bottom, the timing and slope of any upturn remains uncertain as mining capex plans continue to be pushed to the right," analysts Stephen Volkmann, Chirag Patel, and Thomas Gilloran wrote.
TheStreet Ratings team rates JOY GLOBAL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOY GLOBAL INC (JOY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
- The revenue fell significantly faster than the industry average of 2.8%. Since the same quarter one year prior, revenues fell by 33.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for JOY GLOBAL INC is currently lower than what is desirable, coming in at 32.64%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.14% is above that of the industry average.
- JOY GLOBAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, JOY GLOBAL INC reported lower earnings of $4.98 versus $7.18 in the prior year. For the next year, the market is expecting a contraction of 36.1% in earnings ($3.18 versus $4.98).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 61.1% when compared to the same quarter one year ago, falling from $183.19 million to $71.29 million.
- You can view the full analysis from the report here: JOY Ratings Report