JC Penney Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component JC Penney (NYSE:JCP) will unveil its latest earnings on Friday, November 9, 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 5 cents per share, up from profit of 18 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 18 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 5 cents during the last month. Analysts are projecting profit to rise by 54.3% versus last year to 43 cents.

Past Earnings Performance: The company showed net loss of 37 cents per share versus a mean estimate of a loss of last quarter. This marks the fourth month of falling short of estimates.

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A Look Back: In the second quarter, the company swung to a loss of $147 million (67 cents a share) from a profit of $14 million (7 cents) a year earlier, missing analyst expectations. Revenue fell 22.6% to $3.02 billion from $3.91 billion.

Stock Price Performance: Between September 10, 2012 and November 5, 2012, the stock price had fallen $5.35 (-18.6%), from $28.70 to $23.35. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 14.4% (+$2.94) 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: On average, analysts predict $3.29 billion in revenue this quarter, a decline of 17.5% from the year-ago quarter. Analysts are forecasting total revenue of $14.22 billion for the year, a decline of 17.6% from last year’s revenue of $17.26 billion.

Analyst Ratings: There are mostly holds on the stock with 10 of 16 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.91 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. The company regressed in this liquidity measure from 1.92 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 1.9% to $2.48 billion while assets rose 1.2% to $4.74 billion.

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

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