Joy Earnings Fall on Coal Mining Weakness, But Forecasts Growth (JOY, ANR, PCX, BTU, RDC)
Warm winter weather and low prices for natural gas have combined to weaken demand for coal, and as a result of that decline, underground mining machinery maker Joy Global Inc. (NYSE: JOY) reported quarterly earnings and revenues below estimates. Joy’s…
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Warm winter weather and low prices for natural gas have combined to weaken demand for coal, and as a result of that decline, underground mining machinery maker Joy Global Inc. (NYSE: JOY) reported quarterly earnings and revenues below estimates. Joy’s EPS came in at $1.33, compared with estimates of $1.$35 and revenue came in at $1.14 billion versus estimates of $1.16. Not a big miss, buy a miss nevertheless.
Miners Alpha Natural Resources Inc. (NYSE: ANR) and Patriot Coal Corp. (NYSE: PCX) have both recently closed high-cost shafts and Peabody Energy Co. (NYSE: BTU) is cutting production.
For the 2012 fiscal year, Joy forecast EPS of $7.40-$7.80 on revenue of $5.6-$5.8 billion. Last December the company forecast 2012 EPS of $7.00-$7.40 on revenue of $5.3-$5.5 billion.
The improved forecast is due to expected sales growth at Joy’s recently acquired Chinese subsidiary and growth at its LeTourneau from Rowan Companies Inc. (NYSE: RDC).
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.