J. C. Penney
The 10-second takeaway
For the quarter ended Oct. 27 (Q3), J. C. Penney whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share shrank.
Margins shrank across the board.
J. C. Penney tallied revenue of $2.93 billion. The 17 analysts polled by S&P Capital IQ hoped for a top line of $3.27 billion on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $3.99 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.93. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. GAAP EPS were -$0.56 for Q3 against -$0.67 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.5%, 490 basis points worse than the prior-year quarter. Operating margin was -4.2%, 660 basis points worse than the prior-year quarter. Net margin was -4.2%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.55 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $13.96 billion. The average EPS estimate is $0.54.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 624 members out of 947 rating the stock outperform, and 323 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give J. C. Penney a green thumbs-up, and 94 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 $27.00.
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