J C Penney Shares Rose 8% in Pre-Market Trading
Shares of J C Penney Company (JCP) were jumping in Friday's premarket trading $0.65 or 8.05% to $8.72 per share, then it is clear that this is a stock to watch close during the trading day.
J C Penney Company is a leading mall-based family department store operator in the U.S., with approximately 1,060 retail locations and jcp.com.
Today, the company announced a second quarter loss which was lower than expected and revenue beat estimates. The company said sales at stores open at least a year increased 4.1% and it expects those sales to rise in the range of 4 to 5% in the full year.
It reported a loss of $138 million, or $0.45 per share, up from a loss of $172 million, or $0.56 per share in the same quarter a year ago.
Marvin Ellison, chief executive officer said, "We are pleased to report another quarter of improved performance thanks to the commitment and diligence of the JC Penney team. Although we have significant work to do as a company to regain our status as a world-class retailer, I am pleased with the resilience and the efforts of our associates. I also remain confident in our ability to achieve the long-term financial targets we have laid out".
Besides having expanded the gross margin to 37% of sales, EBITDA rose to $115 million and now expects them at about $620 million, higher than the $600 million forecasted previously. This measure provides more insight than net income while providing investors with an objective way to analyze operating profitability.
The stock is up 33.4% in a year-to-date basis, but down 11.14% in the past 12 months and could become a top performer this year. In simple words, consuming spending is rising and unemployment is down so retailers are good options for investors because the company clearly is turning around.
Further, hedge funds have been bullish in the stock. Mario Gabelli upped his stake by 4.70% in the second quarter to 891,500 shares. On the other hand, Chuck Royce reduced his position by 11.05% to 1,633,384 shares.
Meanwhile, shares of Nordstrom (JWN) are soaring more than 5% after it has reported better-than-expected results for its fiscal second quarter and has raised its financial projections.
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