J.C. Penney (JCP) Stock Soars on First Quarter Earnings
Shares of J.C. Penney Company Inc. (JCP) were trading +1.60 or +19.12 percent higher to $9.97 per share in pre-market trading this morning, after the company announced better than expected earnings for the companyâ s first quarter 2014 fiscal year after the close yesterday. Shares were trading as much as +25 percent higher in the afterhours session.
J.C. Penney stock closed at $8.37 per share, down -0.24 or -2.79 percent in Thursdayâ s regular trading session.
Plano, Texas based J.C. Penney Company Inc. is a major U.S. department store chain with more than 1,100 stores operating in all 50 states and Puerto Rico. The company was founded in Wyoming in 1902 by James Cash Penney. J.C. Penney stores are primarily located in shopping malls and in addition to selling regular merchandise, the company also leases space to third party vendors within its stores such as Seattleâ s Best Coffee. For the companyâ s first quarter, J.C. Penney reported net sales of $2.80 billion versus $2.64 billion in the same period one year ago. The analyst consensus was for $2.71 billion in net sales in the quarter. Same store sales increased +6.2 percent showing sequential improvements each month in the quarter. In addition to better same store sales, J.C. Penney reported its online sales had increased +25.7 percent compared to last year. J.C. Penney reported a net loss of -$352 million, or -$1.15 per share, versus a loss of -$348 million, or -$1.58 per share in 2013â s first quarter. Analysts were predicting the company would post a loss of -$0.89 per share. Nevertheless, operating income for the quarter was a loss of -$247 million, which was an improvement of +49.2 percent over the same period last year. Gross margins also increased to 33.1 percent of sales, up +30.8 percent over the same quarter last year. In a conference call after the earnings release, Chief Executive Myron E. Ullman said that, â
Published on May 16, 2014
By Jay Hawk