Analysts on average had expected a loss of 38 cents per share on revenue of $2.92-billion, according to Thomson Reuters I/B/E/S.
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The department store reported its first decline in same-store sales, 0.4 percent, reversing five straight quarters of growth. Earnings (EPS) for the recently concluded quarter is projected to come in at -$0.38/share with $2.92B in revenue.
The Commerce Department said on Friday retail sales jumped 1.3 percent last month, the largest gain since March 2015.
Noteworthy Analyst’s Rating to Observe: J.C. Penney Company, Inc.
Despite narrowing its losses – posting a net loss of $68 million in Q1 2016 compared with a net loss of $150 million in the prior year – investors are likely hung up on the company’s sales slip.
Gross margins fell by two basis points to 36.2% in the first quarter. The year-to-date performance of the company stands at 18.47 % with decrease of -12.62 % in the last week and 5.34 % in the previous three months. Analysts had expected the company to post a loss of 37 cents.
The biggest institutional shareholders in J.C. Penney Company, Inc. Sales also missed the average analyst estimate of $2.92 billion.
In terms of earnings per share, 19 analysts have a -0.11 EPS mean target for the quarter ending Jul-16, for the quarter ending Oct-16, 19 analysts have a -0.18 EPS mean target and for the quarter ending Oct-16 there are 14 estimates of -1.20 EPS.
While our first quarter sales were below our expectations, we are maintaining our annual comp guidance of 3 % to 4 % as a result of the positive nature of our recent sales trends, the strength of our Sephora business and our decision to accelerate our appliance rollout.
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The company still expects same-store sales to rise 3 percent to 4 percent for the year. Does any of this sound like a reason to be upbeat about the rest of the year? The path to a full-year total of $1 billion could be rockier than the company expects. Over the 52-week trading session, the stock has a 52-week high price of $11.99 and its 52-week low is listed at $6.00. During the last trade, shares reached to high price of $10.50 and touched the low price of $10.28. Then analyst placed estimates and price target under review ahead of the conference call, while leaving the stock in the Americas Sell List.
