Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In an effort to stabilize its financials, replenish inventory and fund the overhauling costs related to its new home departments across 500 stores, J. C. Penney Company Inc. (JCP - Analyst Report) drew $850 million from its $1.85 billion revolving credit facility.

This comes within a week of Ron Johnson’s removal from the position of the CEO, as his ambitious transformational ideas failed to materialize and former CEO, Myron E. (Mike) Ullman, III was reinstated to the helm.

Ron Johnson, who was appointed as the CEO with high expectations, was discharged from his position after serving for 17 months. Within this span, Johnson announced a string of strategic measures to bring the company back on its growth trajectory. Back then, the company’s COO Mike Kramer had announced plans to fund the entire transformation activities through its cash from operations.

On the other hand, J. C. Penney’s restructuring initiatives have been crumbling as the company is exhibiting no signs of improvement. Alongside, it is constantly lagging its peers, Macy’s Inc. (M - Analyst Report), Target Corporation (TGT - Analyst Report) and Kohl’s Corporation (KSS - Analyst Report) in terms of performance.

If we look at the earnings surprise history, J. C. Penney has missed the Zacks Consensus Estimate for 5 straight quarters with an average negative surprise of approximately 447.8%.

During the last reported quarter, the company posted an adjusted quarterly loss of $1.95 per share compared with earnings of 21 cents in the year-ago quarter. The Zacks Consensus Estimate for the quarter was of a loss of 19 cents.

Shares of J.C. Penney currently maintain a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.28 +14.66%
ANI PHARMACE ANIP 24.64 +13.97%
E HOUSECHINA EJ 11.01 +9.44%
CANADIAN SOL CSIQ 26.90 +6.87%
KNIGHTSBRIDG VLCCF 12.47 +5.50%