TheStreet's Jim Cramer shares his thoughts on the company's recent quarter.
NEW YORK (TheStreet) -- J.C. Penney (JCP) - Get Report shares are skyrocketing 13.76% to $9.51 on Friday after the department store operator posted its 2015 fourth quarter earnings that topped forecasts.
The results were posted Thursday night, several hours before its scheduled release on Friday morning.
Earnings for the recent period came in at 39 cents a share, handily beating Wall Street's estimates of 23 cents a share. During the same quarter the previous year, the Plano, TX-based company earned 4 cents a share.
Revenue of $4 billion was above expectations of $3.99 billion, thanks to robust holiday sales, and was higher than $3.9 billion it reported a year ago.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio said, "Gross margins are going up, meaning they're not being as promotional, and more importantly, they're saying they're taking shares--J.C. Penney is back."
Comparable store sales increased 4.1% for the quarter with Home, Sephora, Footwear and Handbags being the top performing merchandise divisions.
These results come as other department store operators, including Nordstrom (JWN), Kohl's (KSS), and Macy's (M), have reported grim quarterly sales, which were adversely impacted by the unusually warm weather.
"Our focus on private brands, omnichannel and revenue per customer is clearly resonating as we continue to win market share in a competitive environment," J.C. Penney CEO Marvin R. Ellison said.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and decline in the stock price during the past year.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JCP