JC Penney Earnings: Here’s Why the Stock is Rising Now

J. C. Penney Company, Inc. (NYSE:JCP) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.20%.

J. C. Penney Company, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-2.16 in the quarter versus EPS of $-0.37 in the year-earlier quarter.

Revenue: Decreased 11.88% to $2.66 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: J. C. Penney Company, Inc. reported adjusted EPS loss of $2.16 per share. By that measure, the company missed the mean analyst estimate of $-1.06. It missed the average revenue estimate of $2.76 billion.

Quoting Management: Myron E. (Mike) Ullman, III, chief executive officer of jcpenney, said, “Since I returned to jcpenney four months ago, we have moved quickly to stabilize our business – both financially and operationally – and we have made meaningful progress in important areas of the business. There are no quick fixes to correct the errors of the past. That said, we have identified the challenges, put solid plans in place to address them and have experienced and capable people in key roles to do so.”

Key Stats (on next page)…

Revenue increased 1.06% from $2.64 billion in the previous quarter. EPS increased to $-2.16 in the quarter versus EPS of $-1.31 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.69 to a loss $0.8. For the current year, the average estimate has moved down from a loss of $3.1 to a loss of $3.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)