This Is Why J. C. Penney Company, Inc. (JCP) Kept Me Up At Night?

 

J. C. Penney Company, Inc. (NYSE:JCP) is expected to announce second quarter financial results after market close (confirmed) on August 11, 2017. The company added about -12.3% percent in value since last earnings when it was at $5.29. Based on the most relevant historical data, there is a 62 percent probability for share price to go down following the next earnings report. Looking further into earnings reaction history, the stock had moved down 18 times out of last 29 quarters. It has topped earnings-per-share estimates 91% of the time in its last 12 earnings reports. It missed earnings on 1 occasions, and it has met expectations 0 time.

J. C. Penney Company, Inc. (NYSE:JCP) Earnings Reaction History

Overall, the average earnings surprise was 50.05 percent over the past four quarters. Back on Aug 25, it posted earnings per share at $0.06 which topped the consensus $-0.21 projection (Positive surprise of 128.60%). Revenue came in at $2.71B versus consensus estimate of $2.77B. The stock dropped -13.99% percent the day following the earnings was released, and on 7th day price change was -15.12% percent.

On February 24, 2017, it posted earnings per share at $0.64 versus the consensus estimate of $0.61 (Positive surprise of 4.90%). Revenue of $3.96B was below the $3.98B analysts had expected. The stock dropped -5.83% the day following the earnings was released, and on 7th day price change was -7.29%.

On November 11, 2016, it posted earnings per share at $-0.21, missed the consensus estimate of $-0.21 (Negative surprise of 0.00%). Revenue for the quarter was $2.86B while analysts had expected revenues to come in at $2.95B. The stock gained 3.97% the day following the earnings was released, and on 7th day price change was 3.42%.

On August 12, 2016, it posted earnings per share at $-0.05 compared with the consensus estimate of $-0.15 (Positive surprise of 66.70%). That came on revenues of $2.92B for the quarter. Analysts had expected $2.93B in revenue.

J. C. Penney Company, Inc. (NYSE:JCP) Earnings Expectations

In front of Q3 earnings release, Wall Street is expecting earnings per share of $-0.06. The analysts’ current consensus range is $-0.16-$0.06 for EPS. The market consensus range for revenue is $2.73B-$2.97B, with an average of $2.82B.

J. C. Penney Company, Inc. (NYSE:JCP) last closed at $4.75, sending the company’s market cap around $1.44B. The consensus 12-month price target from brokerage firms covering the stock is $6.75 . The share price has declined -57.96% from its best level in 52 weeks and advanced -44.04% this year. It recently traded in a range of $4.64-$4.77 at a volume of 2,665,999 shares. The stock ended last trading session with the price nearly 1.97% higher for the last 5 trading days, rebounding 13.91% from its 52-week low.

 

Elbert Edwards: