Joy Global Inc

Caterpillar, the world’s largest manufacturer of construction and mining equipment, will declare its 3Q16 earnings before the market opens on October 25.

Ritchie Bros. (RBA) entered into a strategic agreement with Caterpillar (CAT) to become its preferred auctioneer for used Caterpillar equipment.

Of the 17 analysts surveyed by Bloomberg, only five issued “buy” recommendations for Joy Global, while 11 issued “holds,” and one issued a “sell.”

Joy Global’s shares are currently trading at a PE ratio of 40.1x, which is expensive next to the industrial sector peer average of 16.5x.

In fiscal 2015, JOY paid around $78 million in dividends to shareholders, but on December 16, 2015, JOY announced a cut in its quarterly dividend.

As of April 29, 2016, Joy Global’s had more than $1.3 billion in debt (long-term debt plus short-term debt), compared to its equity of nearly $1.4 billion.

If the proposed merger with Komatsu is completed, JOY’s common stock will be delisted from the NYSE. JOY expects the merger to be completed in mid-2017.

Komatsu is the largest manufacturer of construction and mining equipment in Japan. Its the second-largest globally, after US-based Caterpillar (CAT).

Komatsu, Japan-based construction equipment maker, will pay $28.30 per share in cash to acquire Milwaukee-based Joy Global. The deal is worth ~$3.7 billion.

Joy Global’s (JOY) stock has been on a downward trend since January 2015, when the stock started falling due to the oversupply in commodities markets.

Joy Global’s fiscal 3Q16 EPS estimate is ~$0.11 per share. The company witnessed EPS of -$0.12 and -$0.01 in fiscal 1Q16 and fiscal 2Q16, respectively.

Caterpillar logged four consecutive quarters of operating losses in the Resource Industries segment—it houses the mining equipment business.

Caterpillar’s (CAT) sales in the Resource Industries segment, which houses the Mining Equipment business, fell by 29% year-over-year in 2Q16 to $1.4 billion.

Of 19 analysts surveyed by Bloomberg, five gave Joy Global a “buy” rating, while 11 gave a “hold” rating, three gave “sell” ratings.

Joy Global’s (JOY) fiscal 1Q16 revenues came in at $526 million, which represents a 25% decline over fiscal 1Q15.

Mining equipment supply and services to US coal mining companies accounted for 76% of Joy Global’s US revenue.

From its acquisition of Joy Global, Komatsu expects to double the size of its manufacturing equipment business and to strengthen its core mining business.

Joy Global’s stock rose by 19.7% from the opening price of $23.5 and closed at $28.2 on July 21, after Komatsu announced that it will acquire the company.

Despite the operating loss of $9.8 million it saw in fiscal 2Q16, Joy Global reported cash generation from continuing operations totaling $44 million.

Joy Global’s (JOY) fiscal 2Q16 revenues came in at $602 million, which was below the analyst estimate of $606 million.

Over the last two years, JOY has repurchased 9.8 million shares worth $533 million. However, the company hasn’t repurchased shares during the last two quarters (fiscal 1Q16 and 2Q16).

In fiscal 2015, Joy Global’s product sales slumped to 26% of total revenue, while service sales accounted for 74% of total revenue.

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.

Joy Global (JOY) will release its fiscal 2Q16 earnings on June 2, 2016. The estimate for fiscal 2Q16 revenue is ~$605.6 million.

JOY’s Underground and Surface segments contributed 54% and 46%, respectively, to the company’s consolidated revenue in 2015.

The surface mining equipment industry held an approximate 37% share in the overall mining equipment market in 2014.

During 2015, Joy Global’s (JOY) Surface Mining segment contributed 46% to the company’s total revenues. Its operating margin stood at 11.5% in 2015.

The global underground mining industry is expected to grow at a compound annual growth rate of approximately 7% from 2015 to 2019.

The mining industry is undergoing a transformation toward automation. In simple terms, this means the removal of human labor from the mining process.

Joy Global (JOY) is one of the major companies in the mining equipment industry. The company’s revenue fell by 25% in 2014, and it fell by 16% in 2015.

Joy Global operates in two business segments, namely its Underground Mining Machinery and Surface Mining Equipment segments.

Joy Global’s management is proud that even during difficult economic conditions, it was successful in aggressively reducing costs. The company’s management also controlled its capital expenditure and its trade working capital.

Joy Global expects global growth to improve modestly in calendar 2016. However, commodity prices aren’t expected to see any material improvement.

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P500 Bull 3X ETF (SPXL) fell by 2.4% and 7.1%, respectively, on Thursday, January 7, 2016.

The materials sector, represented by the Materials Select Sector SPDR ETF (XLB), fell 0.7% on December 28. This followed a fall in Chinese industrial profits in November 2015 for the sixth straight time.

The stocks hardly traded at prices that crossed their moving average values. The only exception was Fastenal. It traded at $40.08.

SPY’s top stocks on December 16, 2015, were First Solar, Windstream Holdings, and Joy Global. They rose 9.7%, 6.2%, and 6.1%, respectively, on the day.

Joy Global and Cummins plunged -13.2% and -7.9%, respectively, on December 1. Bank of America analysts downgraded JOY from “neutral” to “underperform.”

October 26 saw the release of two important economic indicators, namely, the results of the Dallas Fed manufacturing survey and the new home sales report.

Stocks read the September 2015 minutes of the FOMC, the rate-setting committee of the Federal Reserve, as dovish.

SPY’s top stocks were Avon Products (AVP), Denbury Resources (DNR), and Joy Global (JOY). These stocks rose by 14%, 12.2%, and 8.4% on October 8.

On October 8, the US stock market was mostly flat before the FOMC’s minutes were released. The stock market rose after the minutes were released.

On September 15, 2015, there was a strong rally in all nine of the sectors tracked by the S&P 500 Index (SPY). The industrial sector led SPY with a rise of 1.74%.

The SPDR S&P 500 ETF (SPY) rose 1.25% on Tuesday, September 15 ahead of the Fed’s meeting on September 16–17, 2015.

The SPY has been rising subtly after its humble start on September 1. The rising US dollar reflects the growing strength of the US economy.

The energy sector, which was rallying over the surge in oil prices, suddenly got hit by China’s report on the state of its manufacturing.

Manitowoc’s crane business is one of the world’s largest providers of lifting equipment for the global construction industry.

During the third quarter, Manitowoc’s cash from continuing operations was $59.9 million versus $116.1 million in the prior-year quarter.

For 3Q14, net sales in Manitowoc’s crane segment were $569.2 million, 6.7% down compared to $610.2 million in the third quarter of 2013.

At the end of 2013, India’s coal sector was 60.6 billion tons. India has the fifth largest coal reserves in the world. However, India’s coal quality is low. It has a high ash content. The majority of India’s coal reserves are located in the eastern states. Southern India has the most lignite reserves in the country.