Q1 Preview: How Will JCPenney's (JCP) Results Stack Compared to Nordstrom, Macy's?

J.C. Penney (NYSE: JCP) is expected to report its Q1 results on May 16, 2011 and, ahead of the results, is trading down by 1 percent to $38.11 Friday.

The current analyst consensus has JCP reporting $3.95 billion in revenue and EPS of $0.25 for the quarter.

The company said on May 5 total April sales were up 3.4 percent year-over-year to $1.26 billion and same store sales increased 6.4 percent on the month. As a result JCP raised its Q1 GAAP EPS forecast from $0.18-$0.23 to about $0.24.

On May 10 J.C. Penney’s announced that it had completed a $900 million share buyback plan.

Currently there are 13 financial firms that cover the company: 3 rate the stock as a Buy, 8 as a Hold, and 2 as a Sell. The average price target on shares of JCP is $35 with the range being between $32 and $51.

Analyst Comments:

• FBR Capital recently raised its FY11 and FY12 EPS estimates from $2.07 and $2.23 to $2.11 and $2.32. The firm maintains a Market Perform rating and a $35 price target.
  
  
• Morgan Stanley currently has JCP on its "short Research Tactical Idea" list, which means that the firm anticipates a sell-off in the near future.
  
  
• Goldman Sachs looking for quarterly EPS of 28c and for "management to modestly raise guidance of $2.00-$2.10 as earnings came in modestly ahead of adjusted EPS guidance of $0.22-$0.27."

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