Here’s What’s Dragging JC Penney Company Inc (JCP) Down Today

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J. C. Penney Company, Inc. JCP is slated to report first-quarter fiscal 2017 results on May 12. In the preceding quarter, the company reported earnings beat of 4.9%. Let's see how things are shaping up for this announcement.

What to Expect?

The question lingering in investors' minds now is whether J. C. Penney will be able to post positive earnings surprise in the quarter to be reported. In the trailing four quarters, J. C. Penney outperformed the Zacks Consensus Estimate by an average of 24%. The current Zacks Consensus Estimate for the quarter under review is pegged at a loss of 20 cents. In first-quarter 2016, the company had reported loss per share 32 cents. We noted that the Zacks Consensus Estimate has been stable in the past 30 days. Analysts polled by Zacks expect revenues of $2,778 million, down about 1.2% from the year-ago quarter.

J. C. Penney forms part of the Retail-Wholesale sector. As per the latest Earnings Preview , total earnings for the sector are expected to decline by 2.2%, while revenue is projected to improve 3.3%.

J.C. Penney Company, Inc. Holding Company Price, Consensus and EPS Surprise


J.C. Penney Company, Inc. Holding Company Price, Consensus and EPS Surprise | J.C. Penney Company, Inc. Holding Company Quote

Factors Influencing this Quarter

J. C. Penney has taken up several strategic initiatives to drive traffic. The company has been focusing on remodeling, renovating and refurbishing its stores in order to enhance customer shopping experience. Additionally, it has put special focus on enhancing high-margin center core department that houses handbags, fashion accessories, sunglasses and fashion jewelry.

In an effort to better align stores with its omni channel network and utilize capital resources in locations where it has ample opportunity, J. C. Penney has announced strategic initiatives, wherein it will shut down two distribution facilities as well as nearly 130-140 stores. The closure of stores, which represents nearly 13-14% of store portfolio, is likely to hurt total annual sales by less than 5%. Weaknesses in apparel sales are also affecting the company's overall sales.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that J. C. Penney is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

J. C. Penney has an Earnings ESP of 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 20 cents. J. C. Penney Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Wal-Mart Stores, Inc. WMT has an Earnings ESP of +2.08% and also carries a Zacks Rank #2. You can see >the complete list of today's Zacks #1 Rank stocks here


The Home Depot, Inc. HD has an Earnings ESP of +0.62% and carries a Zacks Rank #2.

DSW Inc. DSW has an Earnings ESP of +2.94% and carries a Zacks Rank #3.

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Home Depot, Inc. (The) (HD): Free Stock Analysis Report

DSW Inc. (DSW): Free Stock Analysis Report

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J.C. Penney Company, Inc. Holding Company (JCP): Free Stock Analysis Report

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This is source I found from another site, main source you can find in last paragraph

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