70% of Joy Global's revenue are generated by coal mining companies. With oil prices rising to and above $100, alternative sources of energy such as coal become more appealing. With demand and price rising, coal production increases. Joy Global benefits from rising production, because the mining companies need more equipment and servicing of utilized mining equipment.
Joy Global forecasts earning per share of $3.10 - $3.35 on revenues of $2.8B - $3.0B for fiscal year 2008. Management says expenditures on manufacturing infrastruture in especially China should keep profits down in the short-term. Joy Global estimates were in-line with analyst expectations.
Joy Global reported Q3 results, which were below analyst estimates. The company’s Q3 EPS was $0.66, which is 4 cents less than analyst estimates; its revenues were $622 million as compared to a consensus estimate of $662.4 million.
