Earnings Preview: J.C. Penney Co.

J.C. Penney Co. (JCP) is expected to report Q3 earnings before the market open on Friday, November 13 with a conference call scheduled for 9:30 am ET.

Guidance

Analysts are looking for a profit of 11c on revenue of $4.18B. The consensus range is 10c-15c for EPS, and revenue of $4.16B-$4.18B, according to First Call. The company's September same-store sales declined 1.4% and October's dropped 4.5%. On November 5, the company raised its Q3 EPS view to 10c-11c from 3c-10c. Previously, guidance had been (5c)-5c. In response to weak consumer spending, the retailer has been cutting inventory and expanding the variety of its exclusive brands. Last month, J.C. Penney entered into an exclusive agreement with Liz Claiborne (LIZ), under which JCP will be the exclusive department store destination for the Liz Claiborne and Claiborne lines of women's wear in the U.S. and Puerto Rico.

Analyst Views

BMO Capital analyst Wayne Hood said he's concerned that traffic and sales were weak toward the end of October, but added he is not panicking because J.C. Penney "is doing a good job conveying its value message." Analysts and investors will listen for comments on the company's Manhattan store, as well as on holiday sales and discounts. J.C. Penney shares rose about 6% in Q3.