Post-Earnings Review - J.C. Penney

LONDON, December 4, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on J.C. Penney Co. Inc. (NYSE: JCP). On November 12, 2014, the company reported its financial results for Q3 FY14 (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on J.C. Penney Company Inc. (JCPenney). In Q3 FY14, the company's net sales decreased by 0.5% on a Y-o-Y basis. The CEO of JCPenney, Myron E. Ullman, III, stated that Q3 FY14 results show the company's progress in the final phase of its turnaround. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

For Q3 FY14 JCPenney's net sales stood at $2,764 million compared to $2,779 million in Q3 FY13. The company's reported sales trailed Bloomberg analysts' estimates of $2,818 million. The company's same store sales were flat from Q3 FY13. Meanwhile, JCPenney's gross margin for Q3 FY14 increased to 36.6 % of sales, from 29.5 % in Q3 FY13, positively impacted by a significant improvement in the company`s mix and margin on clearance sales over the previous year quarter. The free research on JCP can be downloaded as in PDF format at:

www.Investor-Edge.com/JCPFreeReport

Mr. Ullman informed that the company continued to significantly improve the profitability of its business with gross margin expansion of 710 basis points, a $342 million improvement in EBITDA and bottom-line financial results that exceeded even the company's own expectations. He added that, like most retailers, following a strong start to the back-to-school season, sales did slow in September and October as unseasonably warm weather hindered the sale of fall goods.

During Q3 FY14, the company reported operating loss of $54 million which represents an improvement of $347 million, or 87% on a Y-o-Y basis. JCPenney's non-GAAP EBITDA for Q3 FY14 improved to $102 million, from a negative non-GAAP EBITDA of $240 million in Q3 FY13. The company's EBITDA for the reported quarter included a gain of $88 million related to the sale of certain store assets. Further, JCPenney's net loss narrowed to $188 million, or $0.62 per share, in Q3 FY14, from a net loss of $489 million, or $1.94 per share, in Q3 FY13. Analysts from Bloomberg had expected the company to report net loss of $259 million or $0.85 per share in Q3 FY14. Sign up and read the free analyst's notes on JCP at:

www.Investor-Edge.com/JCP-04122014

For Q4 FY14, the company expects comparable store sales to increase 2 % to 4 %, while gross margin is expected to increase 500 to 600 basis points from the previous year and SG&A expenses are expected to be slightly above last year`s levels. In addition, for full-year FY14, comparable store sales are expected to be 3.5 % to 4.5 %, gross margin is expected to be 500 to 600 basis points higher from the previous year, and free cash flow is expected to be positive. Further, liquidity is expected to be approximately $2.1 billion at the end of FY14, while, capital expenditures and depreciation and amortization are expected to be approximately $250 million, and $640 million, respectively.

Stock Performance  

On the day following the earnings release, November 13, 2014, JCPenney's stock plummeted 8.51% to end the session at $7.10. Since then, shares of the company have witnessed a mixed momentum. On the last close, Wednesday, December 03, 2014, the stock finished 2.71% lower at $7.19, after vacillating between $6.91 and $7.22. A total of 24.64 million shares were traded, which was above its three months average volume of 18.74 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 10.24% and 4.89%, respectively. Further, the stock has declined 21.42% since the start of 2014. Shares in JCPenney closed below their 50-day and 200-day moving averages of $8.00 and $8.69, respectively. Furthermore, the stock has a Relative Strength Index (RSI) of 45.56. Visit Investor-Edge and access the latest research on JCP at:

www.Investor-Edge.com/JCPEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 4 insider transactions made by 3 individuals. Between November 13, 2014 and November 26, 2014, a total of 101,540 shares have been bought at an average price of $7.28 per share, for a total value of $739,404. During the stated period, Mr. Ullman bought 1,540 shares at an average price of $7.41 per share. On November 16, 2014, Brynn Evanson, EVP- Human Resources at J. C. Penney, sold 717 shares at a price of $7.38 per share. On November 19, 2014, Javier G. Teruel, Director at J. C. Penney, purchased a total of 100,000 shares at $7.28 per share. Complimentary in-depth research on JCP is available at:

www.Investor-Edge.com/JCPInsiderTrading

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