JCPenney surges 23% after its 3rd-quarter earnings report wasn't as bad as analysts thought it'd be
- JCPenney reported fiscal third-quarter 2019 earnings on Friday that weren't as bad as Wall Street expected.
- Shares of the retailer rose as much as 23% on the news in premarket trading Friday.
- JCPenney is trying to turn itself around after struggling amid a tough retail landscape.
- Watch JCPenney trade live on Markets Insider.
JCPenney is climbing after its fiscal third-quarter 2019 earnings report Friday showed signs of life in the struggling retailer.
Shares surged as much as 23% in premarket trading Friday after the report. Still, the stock is trading at roughly $1.15 per share.Here's what the company reported versus what analysts surveyed by Bloomberg expected:
- Adjusted loss per share: 30 cents reported versus 56 cents (expected)
- Net sales: $2.38 billion reported versus $2.43 billion (expected)
- Comparable sales: -9.3% reported versus -8.3% (expected)
The company also reported a net loss of $93 million, or 29 cents per share, narrower than the $151 million loss, or 48 cents per share, from a year earlier.
In addition, the 117-year-old retailer said that it expects adjusted earnings before interest, taxes, depreciation and amortization will be more than $475 million for the full year. That's a step up from the company's previous forecast of between $440 million and $475 million.
"We are beginning to see results - both in our numbers and how we operate as a business," said JCPenney CEO Jill Soltau in a press release.
To turn the business around, JCPenney is making changes to appeal to younger shoppers. It's partnered with thredUP, a resale clothing company, and Pinterest, a social media company. It's also testing new store layouts, including reducing store space and adding cafes and exercise studios to stores.Still, same-store sales have fallen by multiple percentage points for five quarters straight. In its second-quarter 2019 earnings release, JCPenney reported that same store sales decreased 9%. It also plans to close 27 stores across at least 13 states this year.
JCPenney has a consensus price target of 88 cents, and zero "buy" ratings, seven "hold" ratings, and four "sell" ratings, according to Bloomberg data.
JCPenney is up 12.5% year to date.