Joy Global Q4 Results Top Estimates, Guides 2015 EPS Below View

(RTTNews) - Mining equipment maker Joy Global, Inc. (JOY) reported Wednesday a profit for the fourth quarter that soared from last year, which was weighed down by significant asset impairment charges. Both earnings per share and quarterly sales topped analysts' expectations. The company also provided earnings and revenue guidance for the full-year 2015.

The Milwaukee, Wisconsin-based mining solutions provider reported net income of $136.94 million or $1.38 per share for the fourth quarter, sharply higher than $26.83 million or $0.25 per share in the prior-year quarter, which included $0.86 per share of intangible asset impairment charges.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $1.15 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter decreased 4 percent to $1.13 billion from $1.18 billion in the same quarter last year, but topped fifteen Wall Street analysts' consensus estimate of $1.05 billion.

On an operational basis, surface mining equipment registered sales growth of 5 percent, while underground mining machinery sales declined 12 percent from last year.

On a product stream basis, service revenues grew 7 percent, while original equipment revenues declined 20 percent from last year.

Geographically, Joy Global's domestic sales decreased 8 percent, and international sales declined 2 percent from a year ago.

Operating margins for the quarter expanded 12.5 percentage points to 16.5 percent from last year's 4.0 percent.

Orders bookings for the quarter declined 27 percent to $782.49 million from last year. The company ended the fourth quarter with total backlog of $1.33 billion, compared to $1.68 billion at end of the previous quarter.

Looking ahead to fiscal 2015, the company expects adjusted earnings in a range of $3.10 to $3.50 per share, on projected revenues between $3.6 billion and $3.8 billion. Street is currently looking for full-year 2015 earnings of $3.57 per share on annual revenues of $3.79 billion.

"While 2015 will be another challenging year, we are confident in our ability to deliver results, generate cash and continue to allocate our capital resources in a disciplined manner that will create long-term value for our shareholders," President and CEO Ted Doheny said in a statement.

JOY closed Tuesday's regular trading session at $46.05, up $0.25 on a volume of 2.57 million shares.