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What's Coming At JC Penney?

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Shares of J C Penney Company Inc (NYSE: JCP) are up slightly on Tuesday, in anticipation of the company’s first quarter financial results on Wednesday afternoon.

According to Estimize, expectations point toward a considerable year-over-year growth in earnings. However, the projections also imply a big quarter-over-quarter decline in earnings.

The Street anticipates a net loss of ($0.79) per share on revenue of $2.874 billion. The crowd is more bullish and projects a net loss of ($0.73) per share on revenue of $2.887 billion.

The estimates compare to earnings of $0.00 per share on revenue of $3.893 billion reported last quarter, and a net loss of ($1.16) per share on revenue of $2.8 billion registered in the first quarter of 2014.

As seen above, there's no clear trend to suggest if a beat or a miss should be expected this quarter.

A second chart illustrates the evolution of estimates over time. While experts have remained fairly stable, the crowd has become increasingly bearish over time.

Analysts at Sterne Agee CRT also weighed in. The firm modeled a net loss of ($0.71) and explained that, “With the stock seemingly blowing with the proverbial wind, we find it hard to get involved in JCP these days."

Sterne added: "Grounding shares to the fundamentals implies intrinsic value of ~$8 considering the $1.2 billion FY17 EBITDA bogey, but JCP has traded in an extraordinary $6-$11 range over a trailing 12 months that has seen a mixed bag of misses, beats, leadership changes, and an accidental comp leak to boot."

Shares of JC Penney closed Tuesday at $8.88.

Posted-In: Estimize Sterne AgeeAnalyst Color Previews Trading Ideas


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