Analyst Review Alert: Joy Global Inc. (NYSE:JOY)

Analysts are weighing in on how Joy Global Inc. (NYSE:JOY), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.7. The stock is rated as buy by 4 analysts, with 3 outperform and 12 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 19.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.12 a share, which would compare with $0.54 in the same quarter last year. They have a high estimate of $0.21 and a low estimate of $0.06. Revenue for the period is expected to total nearly $608.01M from $792.18M the year-ago period.

For the full year, 19.00 Wall Street analysts forecast this company would deliver earnings of 0.15 per share, with a high estimate of $0.22 and a low estimate of $0.09. It had reported earnings per share of $1.95 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $2.42B versus 3.17B in the preceding year.

The analysts project the company to maintain annual growth of around -29.45% percent over the next five years as compared to an average growth rate of 10.57% percent expected for its competitors in the same industry.

Among the 17 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for JOY is $20.18 but some analysts are projecting the price to go as high as $30.00. If the optimistic analysts are correct, that represents a 36 percent upside potential from the recent closing price of $22.08. Some sell-side analysts, particularly the bearish ones, have called for $10.00 price targets on shares of Joy Global Inc. (NYSE:JOY).

In the last reported results, the company reported earnings of $0.54 per share, while analysts were calling for share earnings of $0.61. It was an earnings surprise of -11.50%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Joy Global Inc. manufactures and services mining equipment for extraction of coal, copper, iron ore, oil sands, gold, and other minerals and ores worldwide. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment. The Underground Mining Machinery segment produces armored face conveyors, battery haulers, continuous chain haulage systems, continuous miners, conveyor systems, feeder breakers, flexible conveyor trains, hard rock mining products, high angle conveyors, longwall shearers, powered roof supports, road headers, roof bolters, and shuttle cars. This segment also provides equipment assemblies, service, repairs, rebuilds, parts, consumables, enhancement kits, and training. The Surface Mining Equipment segment produces blasthole drills, conveyor systems, electric mining shovels, hybrid excavators, feeder breakers, high angle conveyors, walking draglines, and wheel loaders. This segment also provides equipment assemblies, relocations, inspections, service, repairs, rebuilds, upgrades, used equipment, parts, consumables, enhancement kits, and training. Joy Global Inc. also offers life cycle management support services and project management services, as well as smart services, including equipment monitoring, predictive diagnostics, service training support, and parts management for underground and surface applications. The company sells its products and services directly to mining companies through a network of sales and marketing personnel. Joy Global Inc. was founded in 1884 and is headquartered in Milwaukee, Wisconsin.