Joy Global Inc. Q4 Earnings Fall 87%; Reports Weak Outlook (JOY)

Joy Global Inc. (JOY) shares were down on Wednesday morning after the company reported an 87% decline in its Q4 profits and announced a FY2014 outlook below analysts’ estimates.

JOY’s Earnings in Brief
-JOY reported fourth quarter earnings of $26.83 million, or 25 cents per share, down from $212.56 million, or $1.99 per share, a year ago.
-Adjusted earnings were $117.8 million, or $1.11 per share, down from $225.2 million, or $2.10 per share, last year.
-Total revenue fell to $1.18 billion from $1.59 billion last year.
-On average, analysts expected to see adjusted earnings of $1.12 per share and revenue of $1.12 billion.
-FY2013 earnings totaled $533.71 million, or $4.99 per share, down from $762.02 million in 2012. Excluding special items, earnings were $5.83 per share.
-Looking forward, the company expects to see FY2014 earnings between $3.00 and $3.50, while analysts expect earnings to reach $3.68 per share.

CEO Commentary
Mike Sutherlin, President and Chief Executive Officer of JOY commented: “This quarter once again demonstrates outstanding execution in a difficult market. We were very encouraged by the sequential recovery of aftermarket orders. This puts us almost back to the levels of a year ago, even though some regions are still lagging. It was especially good to see the return of machine rebuilds to the U.S. underground business, which is an important step in the recovery of this market segment.”

JOY’s Dividend
JOY will pay its next dividend of 18 cents per share on December 18. The company will likely announce its next dividend payout sometime in February. JOY has paid a quarterly dividend of 18 cents per share (70 cents annually) since 2008.

Stock Performance
Joy Global shares were down $2.47, or 4.39%, during pre-market trading Wednesday. The stock is down 37% YTD.