Mining equipment maker Joy Global shares surge to year highadmin
Investors on Friday rewarded Joy Global Inc., which makes mining equipment, for a fiscal second-quarter profit that easily topped Wall Street expectations. The stock peaked at a new year high.
Net income for the three months ended May 2 fell to $72.1 million, or 66 cents per share, from $77.6 million, or 70 cents per share, in the year-earlier period.
But excluding one-time charges of 13 cents per share for a contract termination and 7 cents per share related to an acquisition in February, Joy Global had adjusted earnings per share of 86 cents, 14 cents more than analysts polled by Thomson Financial expected, on average.
Shares rose $3.79, or 4.7 percent, to $84.23, after earlier hitting a year high of $85.80. Since the closing price Wednesday, the day before earnings were announced, shares have risen about 7 percent.
Lehman Brothers analyst Andy Kaplowitz said Joy Global’s earnings confirm “the relatively unprecedented strength of the current mining cycle.”
Buckingham Research analyst Joel Tiss said that the company’s “market strength is really deepening and continues to look stronger than anyone would have expected.”
“Moreover, we think (Joy Global) could continue to book strong orders throughout 2008 and beyond as still significant emerging market demand continues to lead to strong demand for coal/other commodities.”
Robert W. Baird analyst Robert McCarthy reiterated his “Buy” rating and increased his price target to $92 from $86. And BMO Capital Markets analyst Charles Brady reiterated his “Outperform” rating and raised his price target to $95 from $85.