Joy Global Overjoyed With Stronger Than Expected Q2 Results

Joy Global JOY, a worldwide leader in high-productivity mining solutions, announced its second quarter fiscal 2013 operating results early Thursday morning, beating consensus revenue and earnings per share estimates.

While the company reported an 11.75 percent decrease in revenue from the previous year's corresponding fiscal quarter, equating to a reduction in revenue of $1.5198 billion to $1.36 billion, it still managed to beat average revenue estimates of $1.28 billion.

Earnings per share (excluding special items) were down 15.2 percent from last year's matching fiscal quarter, equating to a reduction in earnings per share from $2.23 to $1.73. However, despite the reduction in profits, Joy Global managed to beat analysts' estimates of $1.56 earnings per share.

In the company's press release, President and Chief Executive Officer Mike Sutherlin was pleased with the quarter's results, while adjusting the company's current guidance to reflect commodity supply surplus and soft-market conditions, "This quarter again reflected strong execution against continued market headwinds...As a result of these factors, we do not expect to reach the upper portion of our prior revenue guidance. We also expect earnings per share to be $0.15 lower on the new revenue range than previously guided. As a result, we now expect our fiscal 2013 revenues to be between $4.9 and $5.0 billion, down from our previous guidance of $4.9 to $5.2 billion."

A variety of factors that have been characteristic of the market for the past several quarters have continued to slow the growth of global commodity demand and hinder the market outlook for Joy Global moving forward. These factors include a sluggish recovery in the U.S., lingering issues with economic contraction in the Eurozone, and weaker than expected recovery in China.

Joy Global closed on Wednesday at $55.08 and is currently trading up 1.67 percent since market open hours.