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J. C. Penney (JCP) Posts Narrower-than-Expected Q1 Loss

J. C. Penney Company, Inc. JCP reported adjusted loss of 32 cents a share in the first quarter of fiscal 2016, which was narrower than the Zacks Consensus Estimate of a loss of 40 cents and the prior-year quarter loss of 57 cents.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 and 2017 has been portraying a downtrend over the past 7 days. In the trailing four quarters (excluding the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 35.5%.

Revenues: J. C. Penney generated total net sales of $2,811 million that decreased 1.6% year over year, and also fell short of the Zacks Consensus Estimate of $2,922 million. Comparable sales declined 0.4% in the quarter.

Outlook: Management expects comparable store sales to increase in the range of 3% to 4% in fiscal 2016, whereas gross margin is expected to expand in the band of 10 to 30 basis points. The company projects EBITDA to reach $1 billion in the fiscal year. 

Zacks Rank: Currently, J. C. Penney carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

Stock Movement: J. C. Penney shares are down roughly 12% during pre-market trading hours following the earnings release.  

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PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
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