Upcoming AWS Coverage on Gencor Industries Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 21, 2016 / Active Wall St. announces its post-earnings coverage on Joy Global Inc. (NYSE: JOY). The Company released its fourth quarter and fiscal 2016 financial results on December 14, 2016. The mining equipment manufacturer's GAAP loss narrowed but still came in below market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Joy Global's competitors within the Farm & Construction Machinery space, Gencor Industries, Inc. (NASDAQ: GENC), reported on December 02, 2016, its fourth quarter and fiscal year 2016 results. AWS will be initiating a research report on Gencor Industries in the coming days.

Today, AWS is promoting its earnings coverage on JOY; touching on GENC. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=JOY

http://www.activewallst.com/registration-3/?symbol=GENC

Earnings Reviewed

For the three months ended October 31, 2016, Joy Global's consolidated net sales totaled $656 million, a 24% decline compared to $866 million reported in Q4 FY15. However, the Company's net sales topped analysts' estimate of $628 million. Joy Global's original equipment sales decreased 33%, while service sales fell 21% compared to the prior year.

Joy Global's consolidated bookings in Q4 FY16 totaled $559 million, down 9% versus consolidated booking of $617 million in the year earlier same quarter. Original equipment orders dropped 22%, while service orders decreased 7% compared to the prior year. Joy Global's total backlog at the end of Q4 FY16 was $819 million, down 6.2% from $873 million at the beginning of FY16.

For Q4 FY16, Joy Global's operating income totaled $13 million compared to a loss of $1.34 billion in Q4 FY15. On a GAAP basis, the Company reported a loss of $8.4 million, or $0.9 per share, for Q4 FY16 significantly narrower than the year-ago loss of $1.32 billion, or $13.49 per share. Q4 FY16 earnings included a net negative impact of $0.26 per share for mark-to-market pension charges, restructuring charges, merger costs, and a net discrete tax charge. This compared to a negative net impact of $13.92 per share for impairment charges, mark-to-market pension charges, restructuring charges, excess purchase accounting, acquisition costs, and loss on early debt retirement and net discrete tax benefits in Q4 FY15. On an adjusted basis, Joy Global posted earnings of $0.17 per share in the reported quarter, lagging analysts' forecasts of $0.18 per share and down 60.5% from Q4 FY15 adjusted earnings of $0.43 per share.

Segment Results

For Q4 FY16, net sales for Joy Global's underground mining machinery slumped 31% in comparison to Q4 FY15. The segments' original equipment sales fell 42% compared to the prior year, with decreases in all regions except Eurasia. The underground mining machinery division's service sales dropped 24% compared to the prior year, with declines in North America, Eurasia, Australia, and China, and partially offset by increases in Africa.

During Q4 FY16, bookings for underground mining machinery decreased 21% in comparison to Q4 FY15. The segment's Original equipment orders slumped 58% on a y-o-y basis, while Service orders for the division dropped 9% compared to the prior year.

During Q4 FY16, net sales for surface mining equipment declined 13% compared to Q4 FY15. The division's original equipment sales registered a 42% gain compared to the prior year, with increases in North America, Latin America, and Australia, but partially offset by declines in Eurasia and China. On the other hand, the segment's Service sales dropped 19% compared to the prior year, with the company reporting a decline in all regions.

In Q4 FY16, Bookings for surface mining equipment decreased 2% in comparison to Q4 FY15. For the segment, Original equipment orders grew 49% on a y-o-y basis, while Service orders dropped 7% compared to the year earlier same quarter.

FY16 Results

Joy Global's consolidated net sales for FY16 declined by 25% from the year earlier same quarter to $2.4 billion. The Company's original equipment sales decreased 37% and service sales dropped 21% compared to the prior year. Joy Global's consolidated bookings in FY16 totaled $2.3 billion, a decrease of 14% versus FY15. Orders for Original equipment fell 21%, while service orders dropped 13% compared to the prior year.

Joy Global's Operating loss for FY16 totaled $41 million compared to an operating loss of $1.11 billion in FY15. The Company's FY16 fully diluted loss per share totaled $0.65 compared to a fully diluted loss per share of $12.08 in FY15.

Balance Sheet

Joy Global's cash provided by continuing operations was $75 million for Q4 FY16 compared to $187 million in Q4 FY15 and $254 million for FY16, a decrease of $102 million from the prior year. Capital expenditures were $11 million in Q4 FY16 compared to $14 million in Q4 FY15. Joy Global's Capital expenditures were $43 million in FY16 compared to $71 million in FY15. As of the end of Q4 FY16, the Company has $751 million available for borrowings under its credit agreement.

On the same day of its earnings announcement, Joy Global announced that its board of directors has declared a quarterly dividend in the amount of $0.01 per share to be paid on January 13, 2017 to shareholders of record on December 30, 2016.

Stock Performance

Joy Global's share price finished yesterday's trading session at $28.04, sliding 0.07%. A total volume of 832.31 thousand shares exchanged hands. The stock has rallied 30.95% and 127.17% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have skyrocketed 122.68%. The stock has a dividend yield of 0.14% and currently has a market cap of $2.76 billion.

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SOURCE: Active Wall Street