EPS & Earnings ... Hits & Misses

[madrose1]

JOYG reports Q2 revs light, comments out outlook (50.81 ) : Reports Q2 (Apr) earnings of $0.70 per share, includes amortization charges, may not be comparable to the Reuters Estimates consensus of $0.72; revenues rose 12.3% year/year to $629 mln vs the $657 mln consensus. JOYG sees EPS in next 12 mos of $3.25-3.50, sees revs over next 12 mos of $2.8-3.0 bln. CEO comments out outlook, "Our forward guidance this quarter reflects the strong outlook for our markets, which will impact our order rates. However, as we look more to the international markets and get involved in larger greenfield projects, we expect that our order rate will continue to be lumpy. Despite the strong outlook, we will have challenges converting these orders into revenues over the next twelve months. Although the U.S. coal market is nearer recovery, I expect our customers to move cautiously, which will delay the response from our Joy Mining underground business. We are unlikely to see any coal production increases before the summer cooling months".

Joy Global-JOYG 2Q07 EPS ahead of estimate and below Street-reit OP@BMOC
The firm believes fundamentals for capital spending in the company's primary end-markets continue to be robust, with its strength continuing for the next few years while the softness of the U.S. coal is a short-lived event. The firm increased their 2008 EPS estimate and to reflect a more upbeat overall outlook, raised their target price to $65 from $55