Joy Global (JOY) Has Plenty Left as Emerging Markets Accelerate Coal Demand - Cramer
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Price: $28.30 --0%
Rating Summary:
3 Buy, 19 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
3 Buy, 19 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Joy Global (NYSE: JOY) shares are lower Friday morning despite some reassuring comments from CEO Mike Sutherlin on Jim Cramer's Mad Money.
Following its quarterly report on February 29th -- where Joy Global said first-quarter earnings were $1.33 per share on revs of $1.14 billion, both missing consensus views -- shares took a modest nosedive. At Thursday's close of $87.50, Joy Global shares are off 4.3 percent from levels traded prior to the report.
Sutherlin said Joy Global's legacy business did well last quarter, with revs bulging 20 percent and operating margins at record levels. Despite some hiccups stemming from two recent acquisitions, Sutherlin believes both will integrate nicely.
Investors have also been keeping attention focused on Joy as the U.S. moves to abandon coal-fired power plants. Admitting a structural shift away from coal towards cleaner -- and cheaper -- gas-fired plants, Sutherlin said the trend is moving along only as fast as the number of gas-fired plants can be built to replace the aging coal-fired system. He noted the shift was a "long-term trend."
On the other side of the coin, emerging economies like China and India are constructing coal-fired plants, with current capacity at about one-third the total U.S. output. Because of the new plants in those areas, any decline in U.S. demand is being more than made up in those economies, according to Sutherlin. China and India are also building like mad as current capacity isn't enough to meet demand.
Cramer agreed with Sutherlin, saying Joy's earnings aren't necessarily about slowing coal demand in the U.S., but rather the ever-increasing demand for the substance as emerging markets continue to expand and build coal-fired plants. He is still bullish on Joy Global moving forward, having been so since March 2009.
Shares of Joy Global are indicated for a slightly lower open Friday.
Following its quarterly report on February 29th -- where Joy Global said first-quarter earnings were $1.33 per share on revs of $1.14 billion, both missing consensus views -- shares took a modest nosedive. At Thursday's close of $87.50, Joy Global shares are off 4.3 percent from levels traded prior to the report.
Sutherlin said Joy Global's legacy business did well last quarter, with revs bulging 20 percent and operating margins at record levels. Despite some hiccups stemming from two recent acquisitions, Sutherlin believes both will integrate nicely.
Investors have also been keeping attention focused on Joy as the U.S. moves to abandon coal-fired power plants. Admitting a structural shift away from coal towards cleaner -- and cheaper -- gas-fired plants, Sutherlin said the trend is moving along only as fast as the number of gas-fired plants can be built to replace the aging coal-fired system. He noted the shift was a "long-term trend."
On the other side of the coin, emerging economies like China and India are constructing coal-fired plants, with current capacity at about one-third the total U.S. output. Because of the new plants in those areas, any decline in U.S. demand is being more than made up in those economies, according to Sutherlin. China and India are also building like mad as current capacity isn't enough to meet demand.
Cramer agreed with Sutherlin, saying Joy's earnings aren't necessarily about slowing coal demand in the U.S., but rather the ever-increasing demand for the substance as emerging markets continue to expand and build coal-fired plants. He is still bullish on Joy Global moving forward, having been so since March 2009.
Shares of Joy Global are indicated for a slightly lower open Friday.
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