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JC Penney’s Q3 Profit Plunges 78%, but Forecast Raised (JCP)

By Dividend.com Staff
November 13th, 2009

jc-penneys-q3-profit-plunges-78-but-forecast-raised-jcp

Department store operator J.C. Penney Company, Inc. (JCP) said Friday that its third quarter profit plunged 78% from last year, hurt by pension plan expenses, but the company raised its sales and profit forecasts.

The Plano, Texas-based company reported third quarter net income of $27 million, or 11 cents per share, compared with $124 million, or 56 cents per share, in the year-ago period. Revenue fell 3.2% from last year, to $4.18 billion.

On average, Wall Street analysts expected a slightly higher profit of 12 cents per share, on matching revenue of $4.18 billion.

Looking ahead, the company raised its full-year profit outlook to a range of 93 cents to $1.08 per share, up from from a prior 90 cents per share. For the fourth quarter, it forecast a profit of 70 cents to 85 cents per share.

J.C. Penney shares $1.61, or +5.5%, in premarket trading Friday.

The Bottom Line
We recently removed shares of JCP from our “recommended” list back on Nov.2, when the stock was trading at $33.13. The company has a 2.72% dividend yield, based on last night’s closing stock price of $29.13. The stock has technical support in the $25 price area. If the shares can firm up, we see overhead resistance around the $33-$35 price levels. We would remain on the sidelines for now.

J.C. Penney Company, Inc. (JCP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 0.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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One Response to “JC Penney’s Q3 Profit Plunges 78%, but Forecast Raised (JCP)”

  1. Laughing Says:

    Any retail business that is making any profit at all in this economy is doing pretty darn well.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.