On Nov. 9, department-store operator J.C. Penney (NYSE:JCP) released Q3 2006 earnings for the period ended Oct. 28. Here are the quick-and-dirty details for the quarter.

  • Sales grew 6.7% to $4.8 billion for the quarter, while same-store sales advanced an impressive 5.2%. Internet sales also advanced a nice 27%.

  • Operating profit grew 24.1% to $504 million, while earnings per share advanced 34% as the company repurchased its shares.

  • For the fourth quarter, management expects diluted earnings of $0.94, while for full-year 2006 it is projecting diluted earnings "in the area of $4.82."

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$4,750

$4,781

$4,479

6.7%

Net Profit

--

$286

$234

22.2%

EPS

$1.22

$1.26

$0.94

34%

Diluted Shares

--

228

249

(8.4%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

42.6%

41.8%

0.8

Operating Margin

10.5%

9.1%

1.4

Net Margin

6.00%

5.2%

0.8

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$1,976

$2,044

(3.3%)

Accounts Rec.

$0

$0

N/A

Inventory

$4,275

$4,229

1.1%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$3,145

$3,079

2.1%

Long-Term Debt

$3,112

$3,454

(9.9%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$253

$176

$77

Capital Expenditures

$560

$395

$165

Free Cash Flow

($307)

($219)

($88)


Find out why Fools always follow the money.

Related Companies:

  • Dillard's (NYSE:DDS)
  • Sears Holdings (NASDAQ:SHLD)
  • Kohl's (NYSE:KSS)
  • Saks (NYSE:SKS)

Eighty-two Motley Fool CAPS players pick J.C. Penney to outperform the market. Ten say it will underperform. Where do you stand? Join more than 12,000 fellow investors in the Fool's new stock-rating service and let your voice be heard .

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to further discuss any companies mentioned. The Fool has an ironclad disclosure policy.