Joy Global Inc. JOY will release fiscal fourth-quarter 2016 financial results, before the market opens on Dec 14.

Last quarter, the company posted a negative earnings surprise of 16.7%. However, in the trailing four quarters, Joy Global has delivered an average positive surprise of 63.9%. Let’s see how things are shaping up for this announcement.

Factors to Consider

During the quarter to be reported, the company completed the sale of its steel plate mill in Longview, TX to Nucor Corporation NUE for nearly $29 million. This will allow Joy Global to focus better on its core operations.

In the quarter, Joy Global unveiled a new line of service products and consumables at the MINExpo International 2016 in Las Vegas. The new products are expected to enable the company bolster its market reach.

In the fiscal fourth quarter, Joy Global’s stockholders voted in favor of its acquisition by Komatsu. The transaction is expected to be closed during mid-2017.

Earnings Whispers

Our proven model does not conclusively show that Joy Global is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Zacks ESP: Joy Global has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 18 cents.

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

JOY GLOBAL INC Price and EPS Surprise

JOY GLOBAL INC Price and EPS Surprise | JOY GLOBAL INC Quote

Zacks Rank: Joy Global carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Although Joy Global’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Price Movement

Over the last one year, Joy Global has outperformed the Zacks categorized Machinery Construction and Mining industry. During this period, the company’s shares surged 150.8%, compared with the industry’s return of 44.4%.

Note that Joy Global will be acquired by Japanese mining and construction equipment maker and seller Komatsu Ltd. for nearly $2.9 billion. A definitive agreement for the acquisition was signed by the representatives of both the companies. The share price of Joy Global has plateaued since the announcement of the deal.

Upcoming Releases

Here are a couple of stocks that have the right combination to report an earnings surprise in their next earnings release.

Caterpillar Inc.  CAT has a Zacks Rank #3 and an Earnings ESP of 3.03%.

Colfax Corporation CFX has a Zacks Rank #3 and an Earnings ESP of 4.44%.

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