Joy Global sees subdued mining investment in 2017


Joy Global was Upgraded by BBT Capital Mkts to ” Hold” on Jul 21, 2016.

Joy Global Inc. reported its third quarter fiscal results Thursday, which showed its net sales suffered a significant drop compared to previous year. The price target estimates represents a standard deviation of 1.58.

Recently, TheStreet Ratings objectively rated this stock according to its “risk-adjusted” total return prospect over a 12-month investment horizon.

Joy did not hold an earnings call with analysts to discuss its results, citing its pending acquisition by Komatsu, and said it would no longer provide a quarterly update on its annual financial guidance.

Milwaukee-based Joy Global, Inc. reported a profit of just $128,000 during the third quarter as increased restructuring costs and challenging end-markets ate into the company’s results.

Joy Global a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. Jefferies Group analyst S. Volkmann now anticipates that the firm will post earnings of $0.15 per share for the year, down from their prior forecast of $0.20. The Company manufactures and markets original equipment and parts, and performs services for both underground and surface mining, as well as certain industrial applications. The company said higher usage of coal to generate electricity amid higher natural gas prices recently, as well as a rise in temperatures in the US, helped domestic coal markets some during the latest period. Its yearly sales growth estimates are -23.60%. The company had revenue of $586.50 million for the quarter, compared to analysts expectations of $605.61 million. Earlier the firm had a rating of “Outperform ” on the company shares.

06/06/2016 – Joy Global Inc. had its “neutral” rating reiterated by analysts at Bank of America Merrill Lynch. However the company observed 52 week high price on 07/22/16 and witnessed 52 week low price on 01/20/16.

Moving ahead, the company indicated that the recent hike in some commodity prices is positive.

The majority of Joy’s profits emanate from the USA coal industry, which has faced pressure in recent years from factors such as more closely regulated environmental practices. However the company’s price to cash per share for most recent quarter stands at 16.72.

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