Amid Unexpected Profit, Can JCPenney Avoid Bankruptcy?

Some investors saw signs of hope for JCPenney (NYSE: JCP) last week after the retailer reported an unexpected profit and positive free cash flow in its fiscal fourth quarter. But the stock still sold off following the news, continuing the slide that began soon after it announced lower comparable-store sales during the holiday shopping season. 

Now, with the stock trading under $1 for more than a month, the retailer faces the threat of a delisting from the New York Stock Exchange. Although JCPenney could still forge a path forward, that path looks less likely to include current investors.

JCPenney offered better-than-expected news in its fiscal fourth quarter, which ended Feb. 2. Total quarterly revenue fell to $3.493 billion, 7.7% lower than the $3.786 billion for the same quarter the year before. Still, the company turned an unexpected profit as it reported adjusted net income (that is, not using generally accepted accounting principles) of $0.13 per share. This was $0.21 per share ahead of estimates but down from earnings of $0.18 per share in the year-ago quarter.

Continue reading

Source Fool.com