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J.C. Penney Co. (NYSE:JCP) is expected to report Q1 earnings before the market open on Friday, May 14 with a conference call scheduled for 9:30 am ET.


Analysts are looking for a profit of 25c on revenue of $3.92B. The consensus range is 22c-26c for EPS, and revenue of $3.84B-$3.97B, according to First Call. On May 6, the retailer raised its Q1 EPS forecast to 25c, above its previous estimate of 20c-25c, and said Q1 revenue was $3.93B, just missing estimates. Q1 same store sales increased 1.3%, the company said. By the end of fiscal 2014, the company said it expects total sales to increase over $5B to reach approximately $23B, driven primarily by comparable store sales growth, and said EPS for 2014 is expected to be over $5.00 per share.

Analyst Views

JP Morgan analyst Charles Grom recently downloaded the stock to Neutral from Overweight, and says shoppers are still cautious about spending which will hurt the retailer's results. Though confidence and spending will improve eventually, he does not expect the company will have a turnaround in the near term. In addition, he notes increasing competition from rivals like Macy's (NYSE:M), which he says is "attacking Penney's 'turf' in the mall". Analysts and investors will listen for comments on how J.C. Penney will look to fend off competitors. In the year-ago quarter, the company reported EPS of 11c on revenue of $3.87B.