Is JC Penney Due for Another Rough Quarter?

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J.C. Penney Co. Inc. (NYSE: JCP) is set to report its most recent quarterly results before the markets open on Thursday. Thomson Reuters consensus estimates call for a net loss of $0.56 per share and $2.81 billion in revenue. The same period from last year reportedly had a net loss of $0.33 per share and $2.81 billion in revenue.

The company closed more than 140 stores last year and faces the prospect it will need to close more soon. Back in August, the company had 860 stores in the United States, including Puerto Rico, along with 98,000 workers. In its most recent earnings report, management said most of its revenue decline was due to store closures. However, the full-year guidance was grim enough to warrant a complete examination of how many locations it can really support.

J.C. Penney revenue fell 7.5% to $2.76 billion for the period that ended August 4. Comparable store sales dropped 0.3%. The company lost $101 million, compared to $41 million in the same quarter the year before.

At that time, the firm revised its full-year guidance and comparable store sales are now expected to be flat, with a net loss in the range of $1.00 to $0.80.

Excluding Wednesday’s move, J.C. Penney had underperformed the broad markets, with its stock down about 57% in the past 52 weeks. In just 2018 alone, the stock was down closer to 60%.

A few analysts weighed in on J.C. Penney ahead of the report:

  • Piper Jaffray has a Hold rating with a $2 price target.
  • Deutsche Bank has a Hold rating with a $2 target.
  • B Riley has a Hold rating with a $2 price target.
  • Citigroup has a Sell rating with a $2 price target.
  • Credit Suisse has an Underperform rating and a $1 target.

Shares of J.C. Penney were last seen down nearly 1% at $1.27 on Wednesday, with a 52-week trading range of $1.25 to $4.75 and a consensus analyst price target of $1.58.