Joy Global’s fiscal 2Q16 EPS estimate
Joy Global’s (JOY) fiscal 2Q16 EPS (earnings per share) estimate is ~-$0.01. In fiscal 1Q16, JOY’s EPS came in at -$0.23, which was below the Market’s expectation of -$0.12. As we can see in the graph below, analysts’ estimates for fiscal 2Q16 are significantly lower than estimates for previous quarters. This is because the industry has been hit hard by reduced mining capex (capital expenditure) and an oversupplied commodities market. Commodity prices as a whole have been under pressure over the last few quarters.
JOY’s 2Q16 EPS estimate is ~-$0.01, which is lower than 2Q15 EPS of $0.59. Companies operating within JOY’s peer group forecast robust EPS. These include Caterpillar (CAT), which managed to beat earnings estimates four times in the last eight quarters. JOY beat earnings estimates five times. Terex (TEX) and Illinois Tool Works (ITW) were able to beat earnings estimates six and eight times, respectively, in the last eight quarters.
For 2Q16, CAT, TEX, and ITW expect their EPS to be better than their 1Q16 EPS. Their 2Q16 EPS are expected to be $0.97, $0.52, and $1.40, respectively. In 1Q16, CAT, TEX, and ITW reported EPS of $0.67, -$0.05, and $1.28, respectively.
If you are interested in diversified exposure to the energy sector, you can invest in the Energy Select Sector SPDR Fund (XLE). XLE has risen ~10.2% year-to-date, as of May 24.
In the next part of this series, we’ll see how Joy Global’s stock has performed ahead of fiscal 2Q16 earnings.