Milwaukee, WI based Joy Global Inc. (JOY - Analyst Report) manufactures surface and underground mining equipment for extraction of coal, copper, iron ore, oil sands, gold and other mineral resources. The company also offers a wide range of value-added after-market services aimed at enhancing reliability and optimizing the work-life of machineries.

It has equipment manufacturing or sales and services facilities in more than 20 countries including the U.S., Canada, Brazil, Chile, South Africa, England, Poland, Russia, India and China. Joy Global now reports results in two segments: Underground Mining Machinery (UMM) and Surface Mining Equipment (SME). In fiscal years 2015, 2014 and 2013, nearly 68%, 69% and 72% of Joy Global’s respective sales, were derived from outside the United States.

Business conditions continue to be tough for Joy Global, primarily due to a slower-than-expected recovery in the global economy and a supply glut in the commodity markets. Joy Global expects to benefit from its cost-saving and restructuring initiatives.

Estimate Trend & Surprise History

Investors should note that the fiscal second quarter Zacks Consensus Estimate for a loss of 3 cents, down 137.5% over the last 90 days.

Coming to the earnings surprise, Joy Global has missed the Zacks Consensus Estimate in two of the last four quarters, resulting in a negative average surprise of 32.59%.

Zacks Rank: Currently, Joy Global has a Zacks Rank #3 (Hold) but that could change following its fiscal second quarter 2016 earnings report, which has just released. We have highlighted some of the key details from the just-released announcement below.

Earnings: Joy Global surpassed expectation. Adjusted earnings per share came in at 9 cents, beating the Zacks Consensus Estimate loss of 3 cents.

Revenue: Revenues of nearly $602 million surpassed the Zacks Consensus Estimate of $588 million by 2.4% but lagged the year ago revenue of $810.5 million by 26%.

Key Stats: Joy Global’s total backlog at the end of fiscal second quarter was $976 million up from $873 million at the beginning of the fiscal year.

Stock Price: It would be interesting to see how the market reacts to the fiscal second quarter results during the trading session today.