Stock Market Watch

J.C. Penney Company – Issues downside guidance for Q4

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J.C. Penney Company, Inc. (NYSE:JCP). Last Market Price: 33.48, Change: -0.44, % Change: (-1.30%). Shares trade in the range of 32.86 – 34.47 dollars. It has a market capitalization of 7.14B dollars, making it a Mid Cap Stock and has 213.32M outstanding shares. The company has a beta of 1.79, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the net income per share (EPS) is 1.61; P/E of 20.75 indicating, the stock to be overvalued or expected increase in company earnings. It operates in Services sector and belongs to Retail (Department and Discount) industry. Percentage shares held by institutional investors is 98%. The company has a 52 week Price range (low – high) of $ 23.44 – 41.00. Average volumes of shares traded daily are 4,930,000. Volume traded in the last session was at 3,140,000, 0.64 times the average volume.

  • Reports Q3 (Oct)
    • EPS of $0.11, in-line with the estimates
    • Revenues fell 4.8% year on year to $3.99 billion
  • Company issues downside guidance for Q4, sees EPS of $1.05-1.15
  • States: While our more affluent customers continued to respond well to jcpenney’s attractions, the moderate customer continues to have limited discretionary spending capability, and that was apparent during the quarter. However, the combination of customer response to the style and value we offer in categories such as women’s and men’s apparel and accessories, coupled with the expense reduction initiatives we put in place over the course of 2011, allowed us to report results in line with our expectations.

For Q3 (Jul ’11), It had a Net profit margin of 0.36%, an Operating margin of 2.07%. Other Key stats and ratios are : Return on average assets of 0.45%, Return on average equity of 1.19%. The organization has an employee strength of 156,000

Consensus Recommendation is a Hold.


Estimate for sales for the Year Ending Jan-11 show a mean of 17,813.30 million dollars, an estimate high of 18,053.00 million dollars and an estimate low of 17,693.30 million dollars.

Estimate for sales for the Year Ending Jan-12 show a mean of 17,485.90 million dollars, an estimate high of 17,845.00 million dollars and an estimate low of 17,193.10 million dollars. A year ago the figures stood at 18,120.60 million dollars.

Estimate for EPS for the Year Ending Jan-11 show a mean of 1.57 dollars, an estimate high of 1.66 dollars and an estimate low of 1.39 dollars.

Estimate for EPS for the Year Ending Jan-12 show a mean of 1.39 dollars, an estimate high of 2.18 dollars and an estimate low of 1.10 dollars. A year ago the figures stood at 1.77 dollars.

Sales for Quarter Ending Jul-11 was estimated at 3,904.65 million dollars, however the actual sales figure stood at 3,906.00 million dollars, 1.35 million dollars more than estimates.

Sales for Quarter Ending Apr-11 was estimated at 3,983.93 million dollars, however the actual sales figure stood at 3,943.00 million dollars, 40.93 million dollars less than estimates.

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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