NEW YORK (TheStreet) --Shares of J.C. Penny (JCP) were flat in early afternoon trading on Friday, after the retail company reported weaker-than-expected 2016 third quarter revenue.

J.C. Penny posted an earnings loss of 21 cents per share, roughly in-line with Wall Street projections, however, revenue of $2.86 billion fell short of the projected $2.95 billion.

Additionally, the company lowered its full-year sales guidance to between a 1% and 2% increase, from a 3% to 4% increase.

"It was not a good quarter and I hate to see it," Lebenthal Asset Management CEO Jim Lebenthal said on CNBC's "Fast Money Halftime Report" today. "A stumble in the long-term plan for them."

When questioned about when the last great quarter J.C. Penny reported was, Lebenthal argued that the most recent quarters have fall into that category, relatively speaking.

"Great is always relative to expectations and the last several quarters have been great in that regard. They're well on track to be profitable for this full-year, and growing into next year," he noted.

However, Lebenthal acknowledged this quarter "was not good." Still, it is not all bad for J.C. Penny investors.

"The reason the stock is only down a little bit is because their verbiage going forward about the fourth quarter was very positive," Lebenthal stated.

Separately, 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. TheStreet Ratings has this to say about the recommendation:

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