J.C. Penney Goes Negative
May 16th 2012 11:30AM
Updated May 16th 2012 11:32AM
J.C. Penney (NYS: JCP) reported earnings on May 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), J.C. Penney missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
J. C. Penney logged revenue of $3.15 billion. The 14 analysts polled by S&P Capital IQ looked for revenue of $3.42 billion on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $3.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.25. The 10 earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. GAAP EPS were -$0.75 for Q1 versus $0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.6%, 290 basis points worse than the prior-year quarter. Operating margin was -4.8%, 910 basis points worse than the prior-year quarter. Net margin was -5.2%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.49 billion. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $16.19 billion. The average EPS estimate is $1.65.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 570 members out of 797 rating the stock outperform, and 227 members rating it underperform. Among 201 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give J.C. Penney a green thumbs-up, and 52 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J.C. Penney is hold, with an average price target of $40.07.
If you're invested in retailers like J.C. Penney, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add J.C. Penney to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.