NEW YORK (TheStreet) -- Shares of J.C. Penney  (JCP) - Get Report continued to fall, down 5.29% to $8.05, in early afternoon trading Monday after the department store chain reported disappointing fourth-quarter earnings last Thursday.

J.C. Penney broke even on earnings per share and missed the consensus estimate of 11 cents a share. Revenue totaled $3.89 billion, which edged analysts' expectations of $3.87 billion.

But the Plano, TX-based company's guidance for 2015 disappointed investors. J.C. Penney expects comparable-store sales to increase 3% to 5% for the full year, down from the company's projection last year for mid-single-digit growth for 2015 to 2017, Bloomberg noted.

J.C. Penney also expects flat free cash flow for the year, which may have worried investors because the  company needed to raise approximately $3 billion in 2013 to fix its finances.

Comparable-store sales climbed 4.4% in the quarter, the company's best growth in three years. This figure was also higher than the 3.8% increase analysts had expected, according to research firm Consensus Metrix.

Gross margin, a crucial measure of profitability, climbed 5.4% for the quarter, while operating income reached $63 million to snap a streak of 13 consecutive losses.

Separately, TheStreet Ratings team rates PENNEY (J C) CO as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and unimpressive growth in net income."

• You can view the full analysis from the report here: JCP Ratings Report

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