J. C. Penney Company, Inc. (JCP - Free Report) reported adjusted loss of 21 cents a share in the third quarter of fiscal 2016, which was narrower than the Zacks Consensus Estimate of a loss of 22 cents and the prior-year quarter loss of 46 cents.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 and 2017 has been portraying a downtrend over the past 30 days. In the trailing four quarters (excluding the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 45.7%.
Revenues: J. C. Penney generated total net sales of $2,857 million that decreased 1.4% year over year, and also fell short of the Zacks Consensus Estimate of $2,944 million. Comparable store sales declined 0.8% in the quarter.
Outlook: Management expects comparable store sales to increase in the range of 1% to 2% in fiscal 2016, whereas gross margin is expected to be flat. The company projects EBITDA to reach $1 billion in the fiscal year.
Zacks Rank: Currently, J. C. Penney carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: J. C. Penney shares are down roughly 7% during pre-market trading hours following the earnings release.
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