J. C. Penney Company Inc
) is slated to report its second-quarter 2012 financial results on
August 10, 2012. The current Zacks Consensus Estimate for the
quarter reflects a loss of 24 cents a share (indicating a sharp
decline from the year-ago quarter) on revenues of $3,172
J. C. Penney, which competes with
), posted quarterly loss of 25 cents a share compared with earnings
of 36 cents in the year-ago quarter. Analysts polled by Zacks
expected the company to post a loss of 11 cents.
Despite delivering a disappointing bottom line, management
reiterated its fiscal 2012 earnings guidance at $2.16, excluding
markdowns, restructuring charges and non-cash qualified pension
The quarterly sales of $3,152 million dropped 20.1% from the
prior-year quarter, and fell short of the Zacks Consensus Estimate
of $3,443 million.
(Read our full report at
J. C. Penney Plunges, Div Shelved
Agreement of Estimate Revisions
Over the past 30 days, 4 out of 12 estimates have been revised
downwards, while none were raised for the second quarter. Moreover,
for fiscal 2012, 3 out of 10 estimates have been revised in the
Over the last 7 days, 2 out of 12 estimates have been revised
downwards, while none were raised for the upcoming quarter.
Moreover, for fiscal 2012, 1 out of 10 estimates has been revised
downwards, while none moved in the opposite direction.
The downward pressure on earnings estimates was in response to
the company's dismal performance and uncertainty hovering over its
growth plan. J. C. Penney has been struggling against other retail
chains, despite of an array of measures taken to uplift its
operations. Moreover, an erratic consumer behavior and a sluggish
economic recovery still remain matters of concern.
Magnitude of Estimate Revisions
Given the downward estimate revisions, the Zacks Consensus
Estimate of loss for the second quarter widened by 8 cents and 4
cents in the last 30 and 7 days, respectively.
For fiscal 2012, estimates went down to 94 cents from $1.41 over
the last 30 days, while it decreased 13 cents in the last 7 days.
With respect to earnings surprises, J. C. Penney has topped as
well as missed the Zacks Consensus Estimate over the last four
quarters in the range of negative 127.3% to positive 250%.
J. C. Penney's lackluster performance set the company back while
many of its peers reported impressive numbers. With the hiring of
Ron Johnson and the ongoing efforts for a complete makeover, J. C.
Penney has been striving to attract customers. However, it has
proven a tall task for the company.
Currently, we have a long-term Neutral recommendation on the
stock. However, J. C. Penney holds a Zacks #5 Rank that translates
into a short-term Strong Sell rating.
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