JCPenney (JCP) Q4 Results, FY10 Outlook Come In Better-Than-Expected; Traders Cheer
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J.C. Penney Co. (NYSE: JCP) showed on Friday a 5.2 percent drop in profit, but shares are jumping after the company beat the Street’s expectations and gave an upbeat forecast for 2010.
The department store reported fourth-quarter earnings of $200 million 84 cents per share, 2 cents better than the market consensus of 82 cents per share. In the same quarter last year the company made $211 million, or 95 cents per share. Excluding an expense from the company’s pension program, J.C. Penney earned $1.02 per share in the quarter.
Revenue slipped 3.6 percent for the company to $5.55 billion, slightly beating the market estimate or $5.53 billion, while same store sales fell 4.5 percent.
"By stepping up the style of the merchandise we offer customers and enhancing service in our stores, we were able to drive cash generation and profitability, in spite of the difficult economic climate," said Mike Ullman, chairman and CEO. "With this strong foundation in place, our focus for fiscal 2010 is driving top-line growth."
The company also said that the successful avoidance of clearance discounting during the recent holiday season helped drive shoppers to locations.
J.C. Penney is forecasting first quarter earnings of 16 cents to 20 cents per share, with full year earnings around $1.55 per share. The Street is currently looking for Q1 and FY10 EPS of 18 cents and $1.05, respectively.
Shares of J.C. Penney are up 6.2 per cent to $27.57 on Friday.
The department store reported fourth-quarter earnings of $200 million 84 cents per share, 2 cents better than the market consensus of 82 cents per share. In the same quarter last year the company made $211 million, or 95 cents per share. Excluding an expense from the company’s pension program, J.C. Penney earned $1.02 per share in the quarter.
Revenue slipped 3.6 percent for the company to $5.55 billion, slightly beating the market estimate or $5.53 billion, while same store sales fell 4.5 percent.
"By stepping up the style of the merchandise we offer customers and enhancing service in our stores, we were able to drive cash generation and profitability, in spite of the difficult economic climate," said Mike Ullman, chairman and CEO. "With this strong foundation in place, our focus for fiscal 2010 is driving top-line growth."
The company also said that the successful avoidance of clearance discounting during the recent holiday season helped drive shoppers to locations.
J.C. Penney is forecasting first quarter earnings of 16 cents to 20 cents per share, with full year earnings around $1.55 per share. The Street is currently looking for Q1 and FY10 EPS of 18 cents and $1.05, respectively.
Shares of J.C. Penney are up 6.2 per cent to $27.57 on Friday.
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