Fueled by climbing demand and higher shipments, Joy Global (NASDAQ:JOYG) surged nearly 8% to a two-year high Wednesday after reporting a stronger-than-expected fourth-quarter profit.
The Milwaukee-based company posted net income of $146 million, or $1.39 a share, compared with $124 million, or $1.20 a share, in the same quarter last year, trumping the Street’s view of $1.16 a share.
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Revenue for the mining equipment maker was $1 billion, up 9% from $964 million a year ago, widely ahead of average analyst estimates polled by Thomson Reuters of $922.84 million.
Earnings were lifted by a 48% increase in bookings to $1 billion, compared with $705 million in the year-earlier period, driven by a more than doubling in its original equipment orders and a 21% gain in after-market orders.
“We were extremely pleased with our results for the fourth quarter,” said Joe Global CEO Mike Sutherlin. “The improving bookings rate supports our view that our mining customers will continue to increase their capital expenditure plans in response to strong industry fundamentals.”
Sutherlin noted that the company continues to ramp up production to meet growing demand, evidenced in its $1 billion in shipments last quarter, and continues to improve the efficiency of its operations.
Given the optimistic outlook, the company said it sees earnings in the range of $5 to $5.30 for fiscal 2011 on revenues of $3.9 billion to $4.1 billion.