Joy Global Inc. (NYSE: JOY) reported first-quarter fiscal 2013 results before markets opened this morning.
The mining equipment maker reported adjusted diluted earnings per share (EPS) of $1.31 on revenues of $1.15 billion. In the same period a year ago, the company reported EPS of $1.26 on revenue of $1.14 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.14 and $1.08 billion in revenue.
On a GAAP basis, Joy Global posted quarterly EPS of $1.33, the same total as the year-ago period.
The company’s CEO continues to sound cautious:
Although there are growing examples that commodity fundamentals are beginning to turn positive, we expect some delay in translating that into increased mine expansion projects due to a much more cautionary stance on capital deployment by our customers.
Joy Global is right to be worried. Mining companies have pulled in expansion projects and have replaced CEOs who cost the companies billions of dollars in impairment charges last year. Virtually every big miner is cutting capital spending, and that means trouble for Joy Global.
The company already has lowered guidance it offered in December, from an EPS range of $5.90 to $6.50 on revenues of $4.9 billion to $5.2 billion to a new EPS range of $5.75 to $6.35 on the same revenues. Joy Global reiterated that new guidance today, which means operating margins are slated to fall.
Joy Global’s shares were down 2.4% in premarket trading this morning, at $58.50 in a 52-week range of $47.69 to $93.15. Thomson Reuters had a consensus analyst price target of around $73.60 before today’s results were announced.