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J.C. Penney Company, Inc. (JCP) is scheduled to report its Q2 2012 results on August 10, 2012, before market opens. The street expects EPS and revenue of ($0.22) loss and $3.22B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from JCP and the news from its closest competitors.

J. C. Penney Company, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported ($0.39) loss per share, failing to meet analyst estimates of ($0.11) loss.

J. C. Penney Company, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is ($0.22) loss based on 13 analysts' estimates, down from $0.13 a year ago. Revenue estimates are $3.22B, down from $3.91B a year ago. The median target price by analysts for the stock is $24.50.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 23, 2012, Barclays reiterated Equal Weight rating for the company.
  • On April 10, 2012, UBS initiated Neutral rating for the company.

Latest News

  • On July 23, 2012, Reuters reported that J.C. Penney Co Inc raised $248 million by selling part of its stake in a Simon Property Group Inc unit.
  • On July 10, 2012, Reuters reported that J.C. Penney Company Inc announced another 350 job cuts at its Plano, Texas headquarters, completing a reorganization of its home office designed to help it bring costs in line with those of rivals.
  • On May 15, 2012, J.C. Penney Company Inc reaffirmed fiscal 2012 earnings guidance and expects earnings per share (EPS) of $2.16 per share which excludes non-cash qualified pension expense, restructuring charges and markdown reserves as the Company transition merchandise assortment.
  • On May 3, 2012, J.C. Penney Company Inc announced that Ken Hannah has been named Chief Financial Officer effective May 7,2012.
  • On April 12, 2012, Reuters reported that J.C. Penney Co Inc said on April 11, 2012 that Michael Dastugue is leaving on April 13, 2012 after just 15 months as chief financial officer as the department store chain continues to work on its overhaul under its new chief executive.
  • On April 6, 2012, Reuters reported that J.C. Penney Co Inc laid off about 1000 employees at its headquarters in Plano, Texas and Pittsburgh customer call center, as part of its previously announced cost cutting measures, the Company said in a regulatory filing on April 06, 2012.
  • On March 23, 2012, J.C. Penney Co Inc announced that its Board of Directors declared a quarterly dividend on the Company's common stock of $0.20 per share. The dividend is payable May 1, 2012, to Company stockholders of record at the close of business on April 10, 2012.
  • On February 24, 2012, J.C. Penney Co Inc announced that as previously announced, the Company expects fiscal 2012 earnings to meet or exceed $1.59 per share. This includes approximately $15 million of restructuring charges to complete the realignment of the Company's supply chain operations and approximately $197 million of non-cash qualified pension plan expense.

Competitors

Dillard's (DDS), Nordstrom (JWN), Kohl's (KSS), Macy's (M), and Wal-Mart (WMT) are peers for comparison for J.C. Penney and the table below provides the key metrics for these companies and the industry.

J. C. Penney Company, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

JCP Chart

JCP data by YCharts

Competitors' Latest Development

  • On August 2, 2012, Nordstrom, Inc. announced that for the second quarter of 2012, it expects same-store sales to increase in the low-single-digit range.
  • On July 5, 2012, Macy's Inc reaffirmed fiscal 2012 guidance and expects same store sales to rise by approximately 3.7%, with earnings per diluted share in the range of $3.25 to $3.30. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.37 for fiscal 2012.
  • On June 12, 2012, The Economic Times reported that Wal-Mart Stores, Inc. plans to snap ties with companies that supply products to its stores if they are involved in any kind of corrupt practices, making it the first retail company to undertake such a stringent initiative in India.
  • On June 11, 2012, Reuters reported that New York City's pension funds became the latest group to file a derivative lawsuit against Wal-Mart Stores Inc based on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials.
  • On June 6, 2012, Nordstrom, Inc. announced that for fiscal 2012, it expects a 50% to 60% increase in sales. The Company reported revenue of $9.31 billion for fiscal 2011.
  • On May 31, 2012, Kohl's Corporation announced that it now expect second quarter 2012 comparable store sales to be modestly negative.
  • On May 23, 2012, Dillard's, Inc announced that the Board of Directors declared a cash dividend of $0.05 per share on the Class A and Class B Common Stock of the Company payable August 1, 2012 to shareholders of record as of June 29, 2012.
  • On May 18, 2012, Macy's Inc announced that it declared a regular quarterly dividend of $0.20 per share on Macy's common stock, payable July 2, 2012, to shareholders of record at the close of business on June 15, 2012.
  • On May 17, 2012, Wal-Mart Stores Inc announced that for second quarter of 2013, it expects diluted earnings per share from continuing operations to range between $1.13 and $1.18. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.16 for second quarter of 2013.
  • On May 10, 2012, Kohl's Corporation announced that for the second quarter of 2012, it expects earnings of $0.96 to $1.02 per diluted share. The guidance is based on total sales growth of 2% to 3% and comparable store sales growth of flat to 1% and includes expected second quarter share repurchases of $250 million.
  • On May 10, 2012, Nordstrom, Inc. announced that for fiscal 2012, it expects earnings per diluted share in the range of $3.30 to $3.45 and same-store sales to increase 4% to 6%.
  • On May 9, 2012, Macy's Inc announced that it continues to expect same-store sales to grow by approximately 3.5% for the remainder of fiscal 2012. When added to the first quarter's reported results, same-store sales growth for fiscal 2012 as a whole now is expected to be approximately 3.7% -- slightly higher than previous guidance for a same-stores sales increase of approximately 3.5% in fiscal 2012.
  • On May 8, 2012, Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Wal-Mart Stores, Inc. common stock during the period between December 8, 2011 and April 20, 2012.
  • On May 2, 2012, Reuters reported that Wal-Mart Stores Inc agreed to pay $4.8 million in back wages and damages to thousands of employees for unpaid overtime after a probe by the U.S. Department of Labor found that the retailer had violated a federal law governing overtime pay. Wal-Mart will also pay $463,815 in civil fines.
  • On April 25, 2012, Law Offices of Howard G. Smith announced that it is investigating potential claims on behalf of shareholders of Wal-Mart Stores, Inc. ("Wal-Mart" or the "Company") concerning possible breaches of fiduciary duties by the Company or its fiduciaries.
  • On April 25, 2012, Newman Ferrara LLP announced that it has begun an investigation into whether certain officers and directors of Wal-Mart Stores, Inc. ("Wal-Mart" or the "Company") violated the Foreign Corrupt Practices Act in connection with alleged bribery payments at the Company's Mexican subsidiary.
  • On April 23, 2012, Wal-Mart Stores, Inc announced that Kendall Law Group, a national securities firm led by a former federal judge with attorneys that include a former U.S. Attorney, is investigating Wal-Mart Stores Inc. The investigation concerns violations of the Foreign Corrupt Practices Act by certain officers and directors of the Company.
  • On April 23, 2012, Shareholder Rights Law Firm Johnson & Weaver, LLP announced that it is investigating whether certain officers and directors of Wal-Mart Stores Inc ("Wal-Mart") breached their fiduciary duties and committed violations of the Foreign Corrupt Practices Act ("FCPA").
  • On April 23, 2012, Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announced that the firms are investigating legal claims against the officers and Board of Directors of Wal-Mart Stores, Inc., for potential breaches of fiduciary duties and violations of the Foreign Corrupt Practices Act (OTCPK:FCPA).
  • On April 12, 2012, Bonobos, Inc announced that Nordstrom will sell Bonobos clothing at Nordstrom full-line stores and on Nordstrom.com. This establishes Bonobos, known for its energetic line of better-fitting men's pants, as the clothing brand of its kind to launch on the web, get to scale, and then extend offline.
  • On March 8, 2012, Kohl's Corporation announced that it has opened eight new stores, bringing approximately 1,000 new jobs nationwide. The Company totally operates 1,134 stores in 49 states.
  • On March 1, 2012, Wal-Mart Stores, Inc. announced that it has approved an annual dividend of $1.59 per share, approximately a 9% increase from the $1.46 per share paid during fiscal year 2012.
  • On February 23, 2012, Kohl's Corporation issued its initial guidance for fiscal 2012. Based on assumptions of a total sales increase of 4.5% and a comparable store sales increase of 2%, the Company expects earnings per diluted share of $4.75. For the first fiscal quarter, the Company expects earnings per diluted share of $0.60 based on assumptions of a total sales increase of 3% and a comparable store sales increase of 1%. According to I/B/E/S estimates, analysts were expecting the Company to report EPS of $4.95 for fiscal 2012; EPS of $0.77 for the first quarter of 2012.
  • On February 21, 2012, Macy's Inc announced that it assuming earnings per share on a diluted basis of $3.25 to $3.30 for fiscal 2012. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $3.26 for fiscal 2012.
  • On February 21, 2012, Wal-Mart Stores, Inc. announced that for first quarter of 2013, it expects diluted earnings per share to be in the range of $1.01-$1.06. For fiscal 2013, it expects diluted EPS to be in the range of $4.72- $4.92. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.05 for first quarter of 2013 and EPS of $4.90 for fiscal 2013.
  • On February 20, 2012, Wal-Mart Stores, Inc. announced that it has reached an agreement to increase its investment in the holding company of Yihaodian, a fast-growing eCommerce website in China, to bring Wal-Mart's total ownership stake to approximately 51%. Closing of the transaction is subject to Chinese government regulatory approval.
  • On February 17, 2012, Nordstrom, Inc. announced that its Board of Directors has authorized a repurchase program of up to $800 million of the Company`s outstanding common stock, through February 1, 2014.
  • On February 16, 2012, Nordstrom, Inc. announced that for fiscal 2012, it expects earnings per diluted share in the range of $3.30 to $3.45 and same-store sales to increase 4% to 6%. According to I/BE/S Estimates, analysts on an average were expecting the Company to report EPS of $3.59 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $4.64B and is currently trading at $21.21 with a 52 week range of $19.06 - $43.18. The stock's year-to-date performance has been -38.96%. It is currently trading above 20 SMA, but below 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: J.C. Penney Reports August 10