Nasdaq Champs

Joy Global Inc. (JOYG)

Last Trade: 40.88
Trade Time: 12:39PM ET

Change: Up 5.12 (14.29%)

Joy Global Shares Up Sharply on Earnings Surprise, Bullish Outlook

Shares of mining equipment maker Joy Global Inc. surged Thursday after the company reported earnings ahead of Wall Street estimates and issued a bullish revenue forecast for the next 12 months.

In recent trading, Joy Global jumped $5.74, or 16 percent, to $41.57 on nearly triple daily average volume.

Joy Global said third-quarter profit surged to $188.6 million, or $1.53 per share, including a reversal of tax allowances that added $111 million, or 90 cents per share, to the bottom line. Excluding items, profit totaled 63 cents per share, well above Wall Street's 58-cent consensus estimate.

"We see no peak in demand for our products and services and, with the exception of short-term softness in the U.S. coal markets, our customers' commodity markets continue to exhibit robust conditions," said John Hanson, Joy Global chairman, president and chief executive.

Baird analyst Robert McCarthy reiterated his "Outperform" rating for the stock, saying in a note to investors Thursday that "Joy sees undiminished strength of machinery demand in nearly all global (commodity) markets."

The company's "large relative exposure to global mining and its direct and rapidly growing participation in the modernization of the China coal mining industry" give it a "unique investment profile," said McCarthy.

Joy Global provided an outlook for the next 12 months -- which do not correspond to a fiscal reporting period -- for revenue growth of 16 percent to 29 percent, or sales ranging from $2.65 billion to $2.95 billion.

McCarthy said about 65 percent to 75 percent of the company's revenue is garnered from abroad.