J. C. Penney (JCP) Q4 SSS Viewed as In-Line; Deutsche Bank Comments
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Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 16
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J. C. Penney (NYSE: JCP) stock was volatile on Tuesday after the company reported Q4 same-store-sales grew 2%. Analyst Paul Trussell of Deutsche Bank views results as in-line.
"We believe investors were expecting positive low-single digits, with today's print directly in-line with that view. Net, we don't see today's release as material to the story," said Trussell.
"Also, in the release was an update on the company's Holiday sales performance, which the company oddly did not provide in its update one month ago. Specifically, during the combined nine-week November and December period, JCP posted SSS of 3.1%. Given the company had already provided November comp results of 10.1%, we estimate that December SSS were approximately negative 1.0%. Taking this one step further, we estimate January SSS fell roughly 4.0%, translating to a 2.0% comp for the quarter. In speaking with management, we note that the weather created numerous headwinds post Christmas with aggressive promotions needed to clear merchandise during the month," added the analyst.
Trussell thinks bears will harp on the lack of reconfirmation of the margin guidance, with potential risk to Q4 GPM.
Deutsche Bank has a Hold rating on J. C. Penney with a price target of $6.00
For an analyst ratings summary and ratings history on J. C. Penney (NYSE: JCP) click here. For more ratings news on J. C. Penney click here.
Shares of J. C. Penney closed at $5.68 yesterday.
"We believe investors were expecting positive low-single digits, with today's print directly in-line with that view. Net, we don't see today's release as material to the story," said Trussell.
"Also, in the release was an update on the company's Holiday sales performance, which the company oddly did not provide in its update one month ago. Specifically, during the combined nine-week November and December period, JCP posted SSS of 3.1%. Given the company had already provided November comp results of 10.1%, we estimate that December SSS were approximately negative 1.0%. Taking this one step further, we estimate January SSS fell roughly 4.0%, translating to a 2.0% comp for the quarter. In speaking with management, we note that the weather created numerous headwinds post Christmas with aggressive promotions needed to clear merchandise during the month," added the analyst.
Trussell thinks bears will harp on the lack of reconfirmation of the margin guidance, with potential risk to Q4 GPM.
Deutsche Bank has a Hold rating on J. C. Penney with a price target of $6.00
For an analyst ratings summary and ratings history on J. C. Penney (NYSE: JCP) click here. For more ratings news on J. C. Penney click here.
Shares of J. C. Penney closed at $5.68 yesterday.
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