Joy Global Q1 Earnings Beat View; Low End of Forecast Raised (JOYG)

in Gold Gold Investing by admin — March 3, 2010 7:00 am | no comments

Mining equipment maker Joy Global Inc. ( JOYG ) said Wednesday that its first quarter profit fell 11% from last year, but results still easily beat analyst expectations, sending its shares higher. The Milwaukee-based company reported fiscal first quarter net income of $76.2 million, or 73 cents per share, compared with $85.7 million, or 83 cents per share, in the year-ago period. Revenue fell 3% from last year, to $729 million. On average, Wall Street analysts expected much smaller profits of 64 cents per share, on lower revenue of $663.4 million. Looking ahead, the company boosted the lower end of its 2010 forecast. Joy now expects full-year earnings of $2.85 to $3.05 per share, up from prior estimates for $2.65 to $3.05. Joy Global shares rose $1.60, or +3.1%, in premarket trading Wednesday. The Bottom Line We had removed shares of JOYG from our recommended list back on Oct.28, when the stock was trading at $53.52. The company has a 1.35% dividend yield, based on last night’s closing stock price of $51.67. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $55-$57 price levels. We would remain on the sidelines for now. Joy Global Inc. ( JOYG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .