Joy Global (JOY) Misses Q1’15 Forecasts

Joy Global, Inc. (JOY) reported first quarter 2015 non-GAAP EPS of $0.25 before the opening bell Thursday, compared to the consensus estimate of $0.36. Revenues declined 16.1% from last year to $703.9 million. Analysts expected revenues of $754.54 million. The stock is currently down 43c, or 1.02%, to $41.70.

“Our first quarter results highlight the continued challenges we face in our end markets as we navigate the extended trough of this cycle,” said in a statement Ted Doheny, President and CEO. “Key commodity prices took another step-down this quarter which has created additional challenges for our customers and slowed our incoming order rates. Until supply and demand conditions improve, we anticipate reduced bookings activity, although the run rate is expected to be above the seasonally slower fiscal first quarter level..”

For FY15, Joy Global, Inc provided EPS guidance of $2.50-$3.00 versus consensus of $3.20 per share. The company also issued revenue projection of $3.3-$3.6 billion, compared to the consensus revenue estimate of $3.64 billion.

On valuation measures, Joy Global shares, which currently have an average 3-month trading volume of 1.18 million shares, trade at a trailing-12 P/E of 12.84, a forward P/E of 11.48 and a P/E to growth ratio of 1.27. The median Wall Street price target on the name is $52.00 with a high target of $60.00. Currently ticker boasts 5 ‘Buy’ endorsements, compared to 15 ’Holds’ and 2 ‘Sell’.

Profitability-wise, Joy Global has a t-12 profit and operating margin of 8.76% and 13.90%, respectively. The $4.10 billion market cap company reported $152.32 million in cash vs. $1.34 billion in debt in its most recent quarter.

JOY currently prints a one year loss of about 23% and a year-to-date loss of around 9%.

Joy Global Inc. is a worldwide leader in high-productivity mining solutions. The company was founded in 1884 and is headquartered in Milwaukee, Wisconsin.

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