JCPenney profit: JCP shares dive 6% despite striking expectations

<p>[Correction: This article was updated on Feb. 27 to correct the total revenue figure.]

JCPenney (NYSE: JCP) earnings for the retail company’s fourth quarter 2019 The JCP share fell on Thursday. This is despite the 13 cents adjusted earnings per share (EPS) beating Wall Street‘s adjusted earnings per share estimate of -6 cents. Its $ 3.49 billion revenue overestimated $ 3.44 billion.

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Here’s what’s worth noting from the latest JCPenney results report.

Adjusted earnings per share decreased by 27.78% from 18 cents during the fourth quarter of 2018. Quarterly revenue is 7.9% lower than $ 3.67 billion from the same period last year. Operating profit of $ 102 million is a decrease of 19.69% compared to the previous year from $ 127 million. Net income was $ 27 million, down 64% from $ 75 million over the same period last year. JC Penney’s earnings report also notes that the company plans to close six stores during the 2020 financial year.

Jill Soltau, CEO of JCPenney, said this about JCP share income:

“We knew it would take time to restore discipline and bring growth back to JCPenney. As we enter Fiscal 2020, we will remain focused on the key principles of retail as we continue to rebuild the company and implement our renewal plan. ”

JCPenney’s earnings report also includes the outlook for 2020, which does not give JCP shares any benefits. This is because it expects comparable store sales for the year to fall between 3.5% and 4.5%.

The JCP share fell 5.97% as of Thursday afternoon.

At the time of writing, William White had no position in any of the above securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/02/jcpenney-earnings-hit-jcp-stock/.

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