The Dividend Daily

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.

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