JC Penney Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component JC Penney (NYSE:JCP) will unveil its latest earnings on Friday, August 10, 2012. J. C. Penney is a holding company that offers merchandise and services to consumers through department stores and direct (Internet/catalog) channels.

JC Penney Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 20 cents per share, a swing from net income of 7 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from a loss of 3 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 16 cents during the last month. Analysts are projecting profit to rise by 13.8% versus last year to $1.07.

Past Earnings Performance: Last quarter, the company missed estimates by 14 cents, coming in at net loss of 25 cents per share against an estimate of a loss of. In the fourth quarter of the last fiscal year, the company also missed expectations.

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Stock Price Performance: Between May 10, 2012 and August 6, 2012, the stock price fell $12.60 (-37.3%), from $33.81 to $21.21. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 5, 2011, when shares rose for seven straight days, increasing 13.2% (+$3.91) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 12.7% (-$4.31) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 17.6% in revenue from the year-earlier quarter to $3.22 billion.

Analyst Ratings: There are mostly holds on the stock with nine of 15 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.92 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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