This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Nice Quarter at J.C. Penney

Now free of its ailing Eckerd drugstore chain, J.C. Penney (JCP - Get Report) Tuesday swung to a second-quarter profit, matching analysts' forecasts. It also cited strong back-to-school department store sales and improved gross margins.

The mainly mall-based department store chain was upbeat about the current quarter, guiding earnings within range of the Wall Street consensus.

Net income was $1 million, which because of preferred dividends translated into a loss of 2 cents a share in the second quarter. The company had break-even results, or a loss of 2 cents a share, a year ago. Results in both quarters included losses associated with the Eckerd division.

Penney said earnings from continuing operations were 23 cents a share in the three months ended July 31, compared to a loss of 3 cents a share in the year-earlier period. Total sales were up 5.8% at $3.86 billion, with same-store department store sales up 7.1%. Same-store Internet and catalog sales dropped 1.6%, however.

"Early back-to-school results are exceeding our expectations," said J.C. Penney Chief Executive Allen Questrom in a statement.

During the quarter, Plano, Texas-based Penney completed the $4.5 billion sale of its Eckerd drugstore chain to both CVS (CVS - Get Report) and Jean Coutu Group, operator of the Brooks Pharmacy chain in the Northeast. The operating loss in the just-completed quarter related to the Eckerd sale was $71 million, net of taxes, the company said.

Tuesday's results come as no shock, as the company upped its second-quarter earnings expectation to 22 cents a share on Aug. 2, well ahead of analysts' consensus estimate at the time. It also announced a $3 billion stock buyback program to be completed over the next year and a plan to retire $2.3 billion in debt. The moves are expected to improve the company's balance sheet by $8 billion.

The company said Tuesday that operating profit in the second quarter jumped to $156 million, from $53 million in the year-ago quarter.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CVS $103.21 0.00%
JCP $8.41 0.00%
AAPL $124.43 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs