Department store operator J.C. Penney Company, Inc. (
) 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
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. (
) 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
Created by Dividend.com