UPDATE: Joy Global Q3 Profit Misses Estimates, Shares Drop

Shares of Joy Global

fell more than 2.7% in pre-market trading after the company reported weaker-than-expected third-quarter earnings. The Milwaukee, Wisconsin-based company posted a quarterly net profit of $71.3 million, or $0.71 per share, versus a year-ago profit of $183.2, or $1.71 per share. Its adjusted earnings came in at $0.80 per share, versus $1.70 per share. Its sales declined 34% to $876 million. However, analysts were expecting earnings of $0.84 per share on revenue of $934.25 million. Net sales for underground mining machinery declined 35% in the quarter, while net sales for surface mining equipment slipped 32%. Consolidated bookings climbed 33% y/y to $923 million in the quarter. Original equipment orders jumped 195% y/y, while service orders rose 7%. Bookings for underground mining machinery gained 37%, while bookings for surface mining equipment climbed 36% for the quarter. At the end of the third quarter, backlog was $1.7 billion, versus $1.5 billion at the beginning of the year. During the quarter, Joy Global repurchased around 1.1 million shares of its common stock for $65 million. "The Joy Global team continues to execute well in a challenging commodity market environment," said Ted Doheny, President and Chief Executive Officer. The executive added, "We continue to see stability in our core service business and have achieved another quarter of solid cash generation which enabled further progress on our share repurchase program.” Joy Global shares declined 2.73% to $60.50 in pre-market trading.