Joy Global, Inc. (NYSE:JOY)

CAPS Rating: 4 out of 5

Manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. The Company's equipment is used in major mining regions throughout the world to mine coal, copper, iron ore, oil sands & other minerals


Player Avatar 2win (< 20) Submitted: 3/8/2011 1:52:58 PM : Outperform Start Price: $93.25 JOY Score: -26.85

Joy Global could rise 22%
The mining industry is still in a spending mood, and this equipment-maker is seeing increased demand.
By Jim J. Jubak on Mon, Mar 7, 2011 11:59 PM
As bad quarters go, this one was really good.

Apparently, investors temporarily forgot that Joy Global’s (JOYG) fiscal first quarter is always the worst of the year for the mining-equipment-mak?er.

So, on March 2, the company announced a mere 19% increase in sales from the first quarter of fiscal 2010. As well as a jump in net income, to 96 cents a share from 73 cents a share in the year-earlier period (that’s 32% growth if you’re following along at home).

And the shares dropped 2.9%, to $94.32 from $97.17. The next day, investors reconsidered -- and the shares closed at $97.33.

The key number to watch in Joy Global’s quarterly results is always bookings. Is the company adding new orders faster than it did in the same quarter a year ago and in the immediately preceding quarter? This quarter, the answer was yes to both questions.

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