Joy Global Down 5% After Guidance Cut
Joy Global (NYSE: JOY) is trading lower on the session following its Q2 earnings announcement. The company reported an EPS of $1.98 vs $1.95 estimates and revenues of $1.54 billion vs $1.43 billion estimates. Joy Global also cut FY guidance and sees EPS of $7.15-7.45 vs $7.40-7.80 prior guidance and revenues of $5.5-5.7 billion vs $5.6-5.8 billion estimates.
Mike Sutherlin, President and Chief Executive Officer said: “Our second quarter reflects both excellence in our execution and concerns over slowing in our markets. Our efforts on cycle time reduction allowed us to increase shipments this quarter in our core Joy underground and P&H surface businesses by 24 percent over last year, and our focus on operating leverage delivered 24 percent operating margins in these core businesses. We are very pleased with the performance from our acquired LeTourneau and International Mining Machinery businesses, as they collectively delivered operating margins above 20 percent before first-year excess purchase accounting charges. With the U.S. market correcting quickly, and the international markets showing signs of near term slowing, we are turning our focus to trimming costs." Joy Global is currently trading at $55.76, a loss of $3.12 or 5.29%.
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