Is J.C. Penney Company, Inc. a Buy?
Shares of JC Penney (NYSE: JCP) recently rebounded from historic lows after the company's third-quarter numbers unexpectedly beat analyst expectations on the top and bottom lines. Its revenue fell 1.7% annually to $2.81 billion, but still beat estimates by $40 million. Its adjusted loss widened from $0.21 to $0.33 per share, but that still topped expectations by $0.10.
That earnings beat was surprising -- JC Penney had warned that it would post a loss of $0.40 to $0.45 per share just two weeks prior to the report. At the time, the retailer believed that the liquidation of its slower-moving inventory, particularly in women's apparel, would produce a wider loss. It also previously forecast comparable store sales growth of just 0.6% to 0.8%, while comps actually rose 1.7%.
Image source: JC Penney.
Source: Fool.com
