J.C. Penney Q1 Profit More than Doubles, Matching View; Provides Modest Guidance (JCP)

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Department store operator J.C. Penney Company, Inc. ( JCP ) on Friday posted a sharp uptick in first quarter profit, but provided an underwhelming full-year forecast.

The Plano, TX-based company reported first quarter net income of $60 million, or 25 cents per share, compared with $25 million, or 11 cents per share, in the year-ago period.

Sales rose a little more than 1% from last year, to $3.93 billion, with same-store sales rising 1.3%.

On average, Wall Street analysts expected a matching profit of 25 cents per share, on matching revenue of $3.93 billion.

Looking ahead, the compared forecast second quarter profit to range from 10 to 13 cents per share.

As for the full year, the company said it expects 2010 profit of $1.64 per share, which would narrowly miss current analyst estimates for $1.65 per share.

J.C. Penney shares fell 32 cents, or -1.1%, in premarket trading Friday.

The Bottom Line
We recently removed shares of JCP from our recommended list on Nov.2, when the stock was trading at $33.13. The company has a dividend yield of 2.84%, based on last night's closing stock price of $28.17. The stock has technical support in the $25-$26 price area. If the shares can build some momentum on this morning's upgrade, we see overhead resistance around the $32 price level. We would remain on the sidelines for now.

J.C. Penney Company, Inc. ( JCP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: JCP



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