J.C. Penney (JCP) Gains on Solid Q1 Results, Boosted Outlook
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J.C. Penney (NYSE: JCP) shares are trading higher following strong first-quarter earnings results Monday morning. The stock last traded at $40.81, up more than 6 percent from Friday's close.
Net income in the quarter was $64 million, or $0.28 per diluted share, a 6.7 percent increase from $60 million reported in the same period last year. Excluding pension plan expense, EPS came in at $0.33.
Total sales increased just 0.4 percent to $3.943 billion. Comps jumped 3.8 percent. Internet sales increased 6.6 percent to $376 million.
Analysts were looking for EPS of $0.25 and revs of $3.95 billion.
"Our ability to deliver on our objectives in the first quarter reflects the progress we are making in executing the Long Range Plan for growth we announced in April 2010," said Mike Ullman chairman and CEO. "We are successfully implementing our merchandising initiatives, with strong gains in both our men's and women's apparel businesses. Additionally, the steps we have taken to manage our expenses position us to increase the flow-through of sales to the bottom line. We are accelerating this process through a series of initiatives across the Company to maximize operational effectiveness. We expect these ongoing actions will result in substantial expense savings, beginning this year, and allow us to significantly accelerate profitability."
Looking ahead, J.C. Penney sees second-quarter EPS of $0.20 - $0.24, versus consensus of $0.21. The company also increased its FY11 EPS expectations from $2.00 - $2.10 to $2.15 - $2.25, versus consensus EPS of $2.04.
Net income in the quarter was $64 million, or $0.28 per diluted share, a 6.7 percent increase from $60 million reported in the same period last year. Excluding pension plan expense, EPS came in at $0.33.
Total sales increased just 0.4 percent to $3.943 billion. Comps jumped 3.8 percent. Internet sales increased 6.6 percent to $376 million.
Analysts were looking for EPS of $0.25 and revs of $3.95 billion.
"Our ability to deliver on our objectives in the first quarter reflects the progress we are making in executing the Long Range Plan for growth we announced in April 2010," said Mike Ullman chairman and CEO. "We are successfully implementing our merchandising initiatives, with strong gains in both our men's and women's apparel businesses. Additionally, the steps we have taken to manage our expenses position us to increase the flow-through of sales to the bottom line. We are accelerating this process through a series of initiatives across the Company to maximize operational effectiveness. We expect these ongoing actions will result in substantial expense savings, beginning this year, and allow us to significantly accelerate profitability."
Looking ahead, J.C. Penney sees second-quarter EPS of $0.20 - $0.24, versus consensus of $0.21. The company also increased its FY11 EPS expectations from $2.00 - $2.10 to $2.15 - $2.25, versus consensus EPS of $2.04.
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