Joy Global Inc. (NYSE:JOY) Plunges After Earning Release
Joy Global Inc. (NYSE:JOY) is a Milwaukee, Wisconsin based Construction Machinery company that operates in surface mining equipment and underground mining machinery segment. Following the 4Q13 earnings release, the stock of Joy Global Inc. (NYSE:JOY) tumbled 5.49% during the yesterday’s session and closed at $53.15. Almost 7.67 million shares exchanged hands against its 30 day average volume of 1.35 million shares.
The stock has delivered some (-40.7%) returns year to date which compares to peer performances of Caterpillar Inc. (NYSE:CAT) and Terex Corporation (NYSE:TEX) that have delivered (-4.83%) and 33.58% returns in the same period, respectively.
Joy Global Inc. (JOY) reported 4Q13 net sales at $1.18 billion as compared to $1.59 billion for 4Q12 which suggest almost 26% year over year decline. For FY13 net sales declined by 11.5% to $5.01 billion as compared with $5.66 billion reported for FY12. However the annual net sales beat the consensus estimate of $4.93 billion. The year over year sales decline was primarily attributed to lower aftermarket and original equipment sales as well as unfavorable exchange rates.
Joy Global Inc. (JOY) reported 4Q13 adjusted earnings of $1.11 per share compared to $2.10 per share for 4Q12. The company reported FY13 adjusted earnings of $5.83 per share compared to $7.44 for FY12. While 4Q13 earnings remained in line with analysts’ estimate, FY13 earnings fell short of $5.84 estimation.
FY13 operating profit also declined by close to 30% to $0.8 billion as compared to $1.2 billion in FY12. The decline in operating profit was attributed to lower sales volumes, less favorable manufacturing cost and an unfavorable product mix. However, reduced product development and selling and administrative costs partially leveled-off that effect.
Cash and cash equivalents of Joy Global Inc. (JOY) as of Oct 25, 2013, were $405.7 million as compared to $263.9 million as of Oct 26, 2012.