Has Joy Global Bottomed Out?
Stephen Simpson, CFA
Stephen Simpson, CFA
Joy Global Tries To Beat The Cycle With Better Margins
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Mar. 3, 6:03 AM
Wed, Mar. 2, 6:37 PM
- Machinery stocks such as Terex (NYSE:TEX), Caterpillar (NYSE:CAT), Deere (NYSE:DE), Cummins (NYSE:CMI), Joy Global (NYSE:JOY) and Manitowoc (NYSE:MTW) may have come too far too fast, J.P. Morgan analyst Ann Duignan asserts.
- Duignan notes that at year-end 2015, the firm's machinery coverage was trading at a P/E multiple of ~14x estimated 2016 earnings, but at March 1, the group was trading at 16.3x; in terms of total shareholder returns, the group was up 5.5%, outperforming the S&P 500's YTD 2.8% loss.
- Within construction stocks, TEX (+25.9%), CMI (+15.1%), MTW (+5.3%) and CAT (+3.0%) have outperformed while Oshkosh (NYSE:OSK) (-9.2%) has underperformed; in agriculture machinery, Agco (NYSE:AGCO) (+11.1%), Deere (+6.3%) and CNH Industrial (NYSE:CNHI) (-2.2%) have outperformed, while JOY (+5.9%) has outperformed in the mining equipment group.
Wed, Mar. 2, 5:30 PM
Wed, Mar. 2, 9:21 AM
- Axiom downgrades Joy Global (NYSE:JOY) to Sell from Hold, while lowering its price target to $10 from $11.
- Analyst Gordon Johnson expects the company to revise the midpoint of its 2016 guidance lower and anticipates continuing pressure on the firm's OEM and After-Market margins.
- JOY -4.2% premarket
- Previously: Joy Global: Short term pain & long term value - Forward View (Feb. 09 2016)
- Previously: Joy Global downgraded to Sell at UBS (Jan. 04 2016)
Tue, Feb. 9, 10:01 AM
- Forward View Consulting downgrades Joy Global (JOY -5.1%) from Speculative Buy to Hold, with a price target of $13 (from $21).
- "Although we don't advise buying Joy shares at this time, an opportunity for reward does exist in the future. Mining definitely isn't dead, and Joy will be in business as long as somebody wants to dig something out of the ground."
Mon, Feb. 1, 10:51 AM
- Barclays upgrades Joy Global (JOY +5.1%) to Overweight from Equal Weight, with a price target of $14.
- The upgrade gives a must needed boost to the stock. JOY shares are down 17% YTD.
Tue, Jan. 26, 2:12 PM
- Terex (TEX +43%) shares resume trading after a halt, soaring higher as the company confirms receiving a $30/share takeover offer from Zoomlion of China.
- TEX says it has entered into a confidentiality agreement with Zoomlion and is discussing the proposal, which values the company at ~$3.3B; TEX says it will not comment further until the board has completed its review.
- TEX had entered into an agreement to merge with industrial crane maker Konecranes (OTC:KNCRF) and TEX's board says it continues to support the proposed deal.
- Word of the proposal had been reported earlier by Bloomberg.
- Peers Manitowoc (MTW +14.3%) and Joy Global (JOY +8.6%) also trade higher on the news.
Mon, Jan. 4, 3:19 PM
- Joy Global (JOY +0.2%) is downgraded to Sell from Neutral with an $8 price target at UBS, which believes earnings will continue lower as commodity headwinds intensify, and that consensus opinion fails to reflect the full magnitude of the company's challenges.
- UBS says it mining and coal capex analysis indicates further declines in JOY customer spending are likely to extend into FY 2017 amid further downside to coal and other mining activity over the next two years; meanwhile, China imports are in decline as it tries to prop up domestic supply while also shifting its power consumption toward cleaner sources.
- UBS believes rebuild activity could get deferred as commodity headwinds intensify, pressuring JOY's service segment revenues, while revenue headwinds facing the company also will prove challenging for the balance sheet.
Dec. 30, 2015, 8:44 AM
- BMO Capital cut its price target on Joy Global (NYSE:JOY) to $16 from $21 after the company provided lower than expected fiscal 2016 guidance.
- However, the firm keeps its Outperform rating on the stock, noting that the company's equity value is roughly in-line with that of its inventories, copper's supply/demand balance has improved, and Joy is making aggressive pushes in areas that have growth potential.
- Joy shares are -72% YTD.
Dec. 21, 2015, 8:06 AM
- FBR raises Joy Global (NYSE:JOY) to Market Perform from Underperform, noting the company's strategy moves to cut costs and deal with an ongoing commodity price slump.
- Analyst Lucas Pipes: "Following the stock's recent sell-off down to ~$12 and a new company strategy outlined in its F4Q15 earnings (including cost cutting, reduced dividend, and amended credit agreement), we are more positive on relative valuation for Joy...we believe the company is now properly downshifting to a tighter structure and reducing costs appropriately for our long-term outlook."
- The firm presently has a $10 price objective on the stock, down from a target of $14.
Dec. 16, 2015, 10:31 AM
Dec. 16, 2015, 8:43 AM
- Joy Global (NYSE:JOY) now turns negative after stating 2016 earnings guidance well below forecasts and cutting its dividend.
- The company expects adjusted earnings per diluted share of $0.10-$0.50 on revenue of $2.4B-$2.6B vs. analysts estimates for earnings of $1.14 a share on revenue of $2.77B.
- JOY -5.4% premarket
- Previously: Joy Global rises after beating estimates (Dec. 16 2015)
Dec. 16, 2015, 7:44 AM
- Adjusted net income of $41.7M, or $0.43 per diluted share vs. $127.5M, or $1.29 per diluted share in the same quarter a year ago.
- Bookings fell 21% Y/Y to $617M. Full year bookings dropped 25% to $2.7B.
- Backlog at the end of the quarter was $873M vs. $1.3B at the beginning of the fiscal year.
- Oversupplied commodity markets drove customer capital expenditures down approximately 18% Y/Y.
- During the fourth quarter, the company did not repurchase any shares of its common stock.
- "We are controlling the things we can, and are confident our strategies and operational execution will position us well for the future, but the state of our end markets sets up another challenging year in 2016 with revenue expected to be $2.4B-$2.6B and adjusted earnings per diluted share in the range of $0.10-$0.50," CEO Ted Doheny declared.
- FQ4 results
- JOY +2.1% premarket
Dec. 16, 2015, 6:05 AM
- Joy Global (NYSE:JOY) declares $0.01/share quarterly dividend, -95% decrease from prior dividend of $0.20.
- Forward yield 0.35%
- Payable Jan. 15; for shareholders of record Dec. 30; ex-div Dec. 28.
Dec. 16, 2015, 6:02 AM
- Joy Global (NYSE:JOY): FQ4 EPS of $0.43 beats by $0.01.
- Revenue of $865.57M (-23.4% Y/Y) beats by $74.43M.
Dec. 15, 2015, 5:30 PM| Dec. 15, 2015, 5:30 PM | 6 Comments
Joy Global, Inc. manufactures and distributes mining equipment for the extraction of coal and other minerals and ores. Its equipment are used in major mining regions throughout the world to mine coal, copper, iron ore, oil sands and other minerals. It has two business segments: Underground... More
Sector: Industrial Goods
Industry: Farm & Construction Machinery
Country: United States
Other News & PR