J.C. Penney Stock Remains Above $40 and Interpublic Above $11 After Earnings

J.C. Penney Company Inc. (NYSE:JCP) also came in short of analyst estimates. Reported a loss of $87 million (41 cents per diluted share) in the quarter. J.C. Penney Company Inc. had a net income of $271 million or $1.13 per share in the year-earlier quarter. Revenue fell 4.9% to $5.42 billion from the year-earlier quarter. J.C. Penney Company Inc. fell short of the mean analyst estimate of 67 cents per share. Analysts were expecting revenue of $5.5 billion.

Ron Johnson, J.C. Penney’s chief executive officer noted, “We closed the year by spending two days with the Company’s key stakeholders to share our ‘blueprint’ for becoming America’s favorite store. While 2011 was a year of transition at jcpenney, 2012 will be a year of transformation. With this in mind, our associate teams worked tirelessly throughout the quarter to get the stores ready for Feb. 1, 2012. I want to thank them for their amazing efforts.”

Competitors to Watch: Sears Holdings Corporation (NASDAQ:SHLD), Saks Incorporated (NYSE:SKS), Macy’s, Inc. (NYSE:M), Kohl’s Corporation (NYSE:KSS), The Bon-Ton Stores, Inc. (NASDAQ:BONT), Dillard’s, Inc. (NYSE:DDS), Nordstrom, Inc. (NYSE:JWN), Overstock.com, Inc. (NASDAQ:OSTK), Wal-Mart Stores, Inc. (NYSE:WMT), Nordtstrom (NYSE:JWN), The TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST) and Target Corporation (NYSE:TGT).

Interpublic Group of Companies Inc. (NYSE:IPG) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the advertising agency rose to $261.9 million (50 cents per share) vs. $197.9 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 32.3% from the year-earlier quarter. Revenue rose 3.4% to $2.07 billion from the year-earlier quarter. Interpublic Group of Companies Inc. beat the mean analyst estimate of 39 cents per share. Analysts were expecting revenue of $2.08 billion.

“Our financial results for the full year and fourth quarter were strong – with organic revenue at the high end of our peer group and significant improvement in both operating margin and earnings per share for 2011. All of our global networks contributed to this performance. We continued to see the benefits of investments in digital talent and capabilities across the portfolio, strong performance in emerging world markets, as well as the vitality of our domestic operations,” said Michael I. Roth, Interpublic’s Chairman and CEO.

“Last year, we made great strides in further strengthening our financial position and concurrently initiated programs that returned over $500 million to our shareholders. Today, we are re-iterating our commitment to those key priorities by announcing a new $300 million share repurchase program and the continuation of our dividend at current levels, and by calling $400 million of our convertible notes. These actions speak to our confidence in the sustainability of Interpublic`s progress. Looking forward, we are targeting 3% organic revenue growth and at least 50 basis points of operating margin improvement for 2012. We remain on track to deliver against our long-term operating goals and to continue driving shareholder value.”

Competitors to Watch: Omnicom Group Inc. (NYSE:OMC), MDC Partners Inc. (NASDAQ:MDCA), Lamar Advertising Company (NASDAQ:LAMR), Charm Communications Inc (NASDAQ:CHRM), Focus Media Holding Ltd. (NASDAQ:FMCN), Inuvo, Inc. (AMEX:INUV), National CineMedia, Inc. (NASDAQ:NCMI), interCLICK Inc (NASDAQ:ICLK), and ValueClick, Inc. (NASDAQ:VCLK).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com