The Gory Details on J. C. Penney's Double Fumble

J. C. Penney (NYSE: JCP  ) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 2 (Q4), J. C. Penney missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped to a loss. GAAP loss per share expanded.

Margins dropped across the board.

Revenue details
J. C. Penney reported revenue of $3.88 billion. The 18 analysts polled by S&P Capital IQ expected revenue of $4.09 billion on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $5.43 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$1.95. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.17 per share. Non-GAAP EPS were -$1.95 for Q4 versus $0.74 per share for the prior-year quarter. GAAP EPS were -$2.51 for Q4 versus -$0.41 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.8%, 640 basis points worse than the prior-year quarter. Operating margin was -18.4%, much worse than the prior-year quarter. Net margin was -14.2%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.95 billion. On the bottom line, the average EPS estimate is -$0.34.

Next year's average estimate for revenue is $13.09 billion. The average EPS estimate is -$0.45.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 655 members out of 991 rating the stock outperform, and 336 members rating it underperform. Among 257 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give J. C. Penney a green thumbs-up, and 89 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J. C. Penney is hold, with an average price target of $20.21.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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