J.C. Penney Shares Pop 14% on Third-Quarter Results -- Was the Quarter That Strong?
Shares of J.C. Penney Company, Inc. (NYSE: JCP), a well-known department store retailer selling merchandise, clothing, and services, are soaring 14% as of 10:40 a.m. EST Friday, after the company trounced Wall Street estimates during the third quarter.
Starting from the top, J.C. Penney generated an adjusted earnings loss of $0.33 per share on revenue of $2.81 billion. That was far better than analysts' estimates calling for a $0.43 per share loss on revenue of $2.77 billion. Arguably the best piece of data from J.C. Penney's third quarter was its comparable sales surprise. Comparable sales increased 1.7% during the third quarter, and while that might not sound like a victory, it's twice what management had predicted only one month ago and better than analysts' estimates of 0.7%.
"During the third quarter, we took aggressive actions to clear slow-moving inventory, primarily allowing for an improved apparel assortment heading in to the Holiday season," said Chairman and Chief Executive Officer Marvin R. Ellison, in a press release. "While these actions had a negative short-term impact on profitability in the third quarter, we firmly believe it was the right decision for the Company as we transition into the fourth quarter and fiscal 2018."
Source: Fool.com
