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Post-Earnings Review - J.C. Penney

Editor Note: For more information about this release, please scroll to bottom

LONDON, August 22, 2014 /PRNewswire/ --


Investor-Edge.com has issued free post-earnings review on J.C. Penney Company Inc. (NYSE: JCP) as the company featured in the headlines on Thursday, August 14, 2014, after reporting its Q2 2014 financial results. J.C. Penney Co. Inc.'s same store sale in Q2 2014 improved 6.0% Q-o-Q, highlighting a third consecutive quarter-over-quarter growth. The company's gross margin also improved 640 basis points on Y-o-Y and 290 basis points sequentially in the second quarter of 2014. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview  

For the quarter ended August 02, 2014, J.C. Penney Co. Inc.'s operating loss narrowed down to $70 million from an operating loss of $395 million in Q2 2013. The company reported non-GAAP earnings before interest, taxes, depreciation, and amortization (EBITDA) of $90 million in Q2 2014, compared to non-GAAP EBITDA loss of $252 million in the year ago quarter. The company's online sales through jcp.com were up 16.7% Y-o-Y to $249 million in the reported quarter. Meanwhile, gross margin in Q2 2014 rose to 36.0% from 29.6% in the prior year comparable quarter. During the reported quarter, gross margin was positively impacted by company's improved clearance sales performance. As on August 02, 2014, inventory stood at $2.85 billion, down 9.7% on year-over-year basis. J.C. Penney Co. Inc. reported a free cash flow of $76 million as on August 02, 2014, compared with a negative free cash flow of $1,146 million as on August 3, 2013. The free research on JCP can be downloaded as in PDF format at:

http://www.Investor-Edge.com/JCPFreeReport

For the second quarter 2014, selling, general & administrative (SG&A) expenses were down $62 million to $964 million, or 34.4% of sales, representing a 410 basis point improvement from last year, primarily driven by lower store expenses, net advertising and corporate overhead as well as improved credit income. In the upcoming quarter, the company expects - a mid-single digit rise in comparable store sales; Gross margin to be in line with Q2 2014; and SG&A expenses to be slightly above last year's levels. For FY 2014, the company expects - a mid-single digits growth in comparable sales; Gross margin to be significantly above FY 2013 level; positive free cash flow; capital expenditure of approximately $250 million and depreciation and amortization value of approximately $640 million.

Myron E. (Mike) Ullman, III, J.C. Penney Co. Inc.'s Chief Executive Officer said in a recent press release that the company's turnaround initiatives continue to produce improved financial results. He added that during Q2 2014, the company reported gains in market share and marked improvement in gross margin in a highly competitive promotional environment. Mr. Ullman informed that the company expects to continue to report profitable sales this back to school season supported by its unique assortment of powerful private brands, key national brands and exclusive attractions, all at a price that fits customer budget. He added that as the company nears the end of its turnaround initiatives, it is now focused on reestablishing J.C. Penney Co. Inc. as the premier shopping destination for the moderate consumer.

The Plano, Texas-based multiline retailer reported net sales of $2.80 billion in Q2 2014, compared to $2.66 billion in the second quarter of 2013 and Bloomberg analyst's net sales expectations of $2.78 billion. The company's GAAP net loss in the reported quarter stood at $172 million or $0.56 loss per share in Q2 2014, as compared to GAAP net loss of $586 million, or $2.66 loss per share in the prior year quarter, and Bloomberg consensus GAAP net loss estimate of $291.60 million, or $0.96 loss per share. Meanwhile, the company's non-GAAP net loss stood at $228 million, or $0.75 loss per share, as compared to non-GAAP net loss $477 million, or $2.16 loss per share in the prior year quarter and Bloomberg analyst non-GAAP net loss estimates of $293.43 million, or $0.90 loss per share. Sign up and read the free analyst's notes on JCP at:

http://www.Investor-Edge.com/JCP-22082014

Stock Performance 

A day after the earnings release, on Friday, August 15, 2014, J.C. Penney Co. Inc.'s shares lost 2.46% to end the session at $9.50. On the last close, Thursday, August 21, 2014, J.C. Penney Co. Inc.'s shares fell 1.55% further to end the day at $10.17, after vacillating between $10.06 and $10.54. A total of 22.60 million shares were traded, which was above its three months average volume of 16.69 million shares. J.C. Penney Co. Inc.'s shares have gained 3.04% in the previous three trading sessions, 17.44% in the last one month, and 11.15% on YTD basis. The stock is trading above its 50-day and 200-day moving averages of $9.06 and $8.33, respectively. Furthermore, J.C. Penney Co. Inc.'s stock has a Relative Strength Index (RSI) of 68.90. Visit Investor-Edge and access the latest research on JCP at:

http://www.Investor-Edge.com/JCPEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, Myron E. (Mike) Ullman, III, CEO and Director at J.C. Penney Co. Inc. bought a total of 1,170 shares worth $11,180.79 at an average price of $9.56. Complimentary in-depth research on JCP is available at:

http://www.Investor-Edge.com/JCPInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

===============

EDITOR'S NOTES:

===============

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.


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