Earnings Preview: Joy Global Inc

May.28.12 | About: Joy Global (JOY)

Company Profile

Joy Global Inc. engages in the manufacture and servicing of mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals. The company operates in two segments, Underground Mining Machinery and Surface Mining Equipment.

Joy Global Inc (NYSE:JOY) is scheduled to report its second quarter earnings results on May 31, 2012, before market open.

Technical Overview

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Joy Global has a market cap of $6.42 billion and it is currently trading around $60.64 with a 52 week range of $57.48 to $101.44. The stock has -32.84% price performance for the year 2012. The following table provides the key financial ratios for Joy Global:

Key Ratio

Value

Current Ratio

1.81

PEG

0.54

P/E

9.57

Forward P/E

6.97

Profit Margin

14.37%

Return On Assets (ROA)

14.10%

Return On Equity (ROE)

37.13%

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Recent Analyst Ratings

Here is a list of recent changes in analyst ratings for the stock:

  • On May 19, 2012, Columbine Capital Services, Inc. upgraded Joy Global from NEUTRAL to FAVORABLE.
  • On May 09, 2012, Buckingham upgraded Joy Global to Buy from Neutral.
  • On April 9, 2012, Thomas White/Global Capital upgraded Joy Global from UNFAVORABLE to NEUTRAL
  • On April 9, 2012, Ned Davis Research downgraded Joy Global from BUY to NEUTRAL
  • On April 6, 2012, Ford Equity Research downgraded Joy Global from FAVORABLE to NEUTRAL
  • On April 5, 2012, Audit Integrity, Inc downgraded Joy Global from 2 to 1.
  • On April 04, 2012, KeyBanc upgraded Joy Global to Buy from Hold.
  • On March 29, 2012, CL King upgraded Joy Global to Buy from Neutral.
  • On March 20, 2012, Joy Global has plunged 5% in early trading, following a downgrade of the company's stock by analysts at UBS to Neutral from Buy.
  • On March 15, 2012, UBS downgraded Joy Global from BUY to NEUTRAL and lowered their price target to $85 from $112.
  • On March 12, 2012, Ned Davis Research upgraded Joy Global from NEUTRAL to BUY
  • On March 9, 2012, Ford Equity Research upgraded Joy Global from NEUTRAL to FAVORABLE
  • On March 3, 2012, Columbine Capital Services, Inc. upgraded Joy Global from UNFAVORABLE to NEUTRAL

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $1.43 billion when compared to $1.06 billion for the same quarter last year. Earnings per share for the second quarter are expected to be $1.95 a share, up from $1.52 a share in the year-ago period.

The average price target from analysts for Joy Global is $103.53 and the average rating is OVERWEIGHT.

Out of the last 4 quarters, Joy Global has met or exceeded the EPS estimates 2 times. The following chart shows the analyst estimates history and the actual EPS results:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure:

I have no positions in any stocks mentioned, but may initiate a long position in JOY over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.