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Joy Global (JOY) Q3 Earnings: What's in Store for the Stock?
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Joy Global Inc. , a leading manufacturer of surface and mining equipment, is scheduled to report fiscal third-quarter 2016 results on Sep 1, before the market opens. Last quarter, the company reported a positive earnings surprise of 400.00%. Let’s see how things are shaping up for this quarter.
Factors to Consider
During the fiscal third quarter, Joy Global entered into a definite agreement with Japanese mining and construction equipment maker and seller, Komatsu Ltd., worth for $2.9 billion. Per the agreement, Joy Global will be acquired by Komatsu Ltd and post acquisition, the former will act as a consolidated subsidiary of the latter.
Coal mining customers account for a major portion of Joy Global’s top line. U.S. coal production in 2016 is expected to much lower than the 2015 levels due to a decline in demand from utilities. In addition, Canadian forest fires interrupted business in the country’s oil sands.
Due to the persistent decline in demand for commodities, this mining equipment maker expects third-quarter earnings to be roughly in line with the second-quarter tally.
Our proven model does not conclusively show that Joy Global will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 12 cents.
Zacks Rank: Though Joy Global’s Zacks Rank #3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Releases
Astec Industries, Inc.’s (ASTE - Free Report) operating earnings of 79 cents in second-quarter 2016 surpassed the Zacks Consensus Estimate of 75 cents by 5.3%.
Caterpillar Inc.’s (CAT - Free Report) operating earnings of $1.09 in second-quarter 2016 beat the Zacks Consensus Estimate of 96 cents by 13.5%.
Terex Corporation (TEX - Free Report) operating earnings of 64 cents per share in second-quarter 2016 outpaced the Zacks Consensus Estimate of 53 cents by 20.8%.
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Joy Global (JOY) Q3 Earnings: What's in Store for the Stock?
Joy Global Inc. , a leading manufacturer of surface and mining equipment, is scheduled to report fiscal third-quarter 2016 results on Sep 1, before the market opens. Last quarter, the company reported a positive earnings surprise of 400.00%. Let’s see how things are shaping up for this quarter.
Factors to Consider
During the fiscal third quarter, Joy Global entered into a definite agreement with Japanese mining and construction equipment maker and seller, Komatsu Ltd., worth for $2.9 billion. Per the agreement, Joy Global will be acquired by Komatsu Ltd and post acquisition, the former will act as a consolidated subsidiary of the latter.
Coal mining customers account for a major portion of Joy Global’s top line. U.S. coal production in 2016 is expected to much lower than the 2015 levels due to a decline in demand from utilities. In addition, Canadian forest fires interrupted business in the country’s oil sands.
Due to the persistent decline in demand for commodities, this mining equipment maker expects third-quarter earnings to be roughly in line with the second-quarter tally.
JOY GLOBAL INC Price and EPS Surprise
JOY GLOBAL INC Price and EPS Surprise | JOY GLOBAL INC Quote
Earnings Whispers
Our proven model does not conclusively show that Joy Global will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 12 cents.
Zacks Rank: Though Joy Global’s Zacks Rank #3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Releases
Astec Industries, Inc.’s (ASTE - Free Report) operating earnings of 79 cents in second-quarter 2016 surpassed the Zacks Consensus Estimate of 75 cents by 5.3%.
Caterpillar Inc.’s (CAT - Free Report) operating earnings of $1.09 in second-quarter 2016 beat the Zacks Consensus Estimate of 96 cents by 13.5%.
Terex Corporation (TEX - Free Report) operating earnings of 64 cents per share in second-quarter 2016 outpaced the Zacks Consensus Estimate of 53 cents by 20.8%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>