Shares of Joy Global spiked 12 percent Thursday after the drilling equipment company reported better-than-expected quarterly profit.
The Milwaukee-based company reported adjusted earnings of 9 cents per share, above Wall Street consensus estimates of zero cents, according to Thomson Reuters. Profit in the second quarter was helped by an increase in service sales and cost cuts, the company said.
Shares of Joy Global, which manufactures equipment for extracting copper, coal, oil and other commodities, lost roughly 50 percent of their value year over year. Commodity prices and demand for mining have fallen sharply, which hurt the bottom line, the company said.
Revenue for the second quarter was down 26 percent from a year earlier, coming in at $602 million, below consensus of $605 million. The company announced that guidance would be at the lower end of previous forecasts of $2.4 billion to $2.6 billion for sales, and 10 to 50 cents for earnings.
Equipment orders were undercut by foreign currency exchange moves, the company said. Overall bookings for the mining equipment company fell to $681 million, down 9 percent from a year ago. Original equipment orders though, were up 12 percent. Underground-mining equipment orders took the biggest hit, down 17 percent year over year.