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Today’s Research Reports on Stocks to Watch: J.C. Penney and Walmart

NEW YORK, NY / ACCESSWIRE / November 16, 2018 / J.C. Penney shares were in the green on Thursday despite a worrisome third quarter financial report. Shares of Walmart Inc. were down despite beating on its own third quarter report, minus a miss on net revenue.

MER Initiates Coverage on:

J. C. Penney Company, Inc.

Walmart Inc.

J. C. Penney Company, Inc. shares closed up 11.48% on about 39.5 million shares traded on Thursday with the stock hitting a new low of 1.04 before popping back. The struggling retailer reported Q3 loss per share of 52 cents, 4 cents better than the analyst estimate of a loss of 56 cents. Revenue for the quarter came in at $2.65 billion versus the consensus estimate of $2.81 billion. Sales at stores open at least a year for the third quarter dropped 5.4% while analysts were only expecting a 0.5% loss. The Company withdrew its profit guidance and lowered its sales expectations for the year. Comparable store sales for fiscal 2018 are now expected to be down low-single digits. New CEO Jill Soltau recently said on the company's third quarter earnings report, "I'm excited to be here and to have the privilege of leading such an iconic quintessential American brand with a strong and long-lasting heritage. In the coming weeks and months, I will continue to meet with and learn from our team throughout the entire organization, talking with them about what we're doing that's working well and most importantly, what we can do to address our opportunities. We will be focusing our review on many areas such as customer data and perceptions and how we communicate with our customer including our promotional cadence, rebuilding our merchandising capabilities, execution both in-store and online, omnichannel strategies, our retail footprint, forecasting accuracy, shrink results, and, of course, inventory levels and replenishment capabilities."

Access MER’s J. C. Penney Company, Inc. Research Report at:

Walmart Inc. shares closed down nearly 2% on Thursday with about 16 million shares traded, almost double compared to usual. The big box retailer reported third quarter results that were better than expected, citing strength in its e-commerce business. U.S. e-commerce sales growing 43% during the third quarter. Walmart reported adjusted earnings per share of $1.08. Analysts had expected earnings of $1.01 per share. Comparable store sales for the third quarter grew at 3.4% while analysts waited for 3.1%. Net revenue however was a miss at $124.9 billion, as analysts estimated $125.5 billion. Walmart also raised its guidance for the full year and is expecting adjusted EPS in the range of $4.75 to $4.85. CEO Doug McMillan stated, "We continue to see strong comp store sales. Our results reflect not only value our customers are finding in our offer, and a lot of hard work from the team, but certainly some macro tailwinds as well, especially in the U.S.” He added, "We’re primarily focused on the fundamentals of the business, but we’re also playing offense and innovating with Store No8. Our Customer Value Index score is running ahead of the aggressive plan we set for this year, led by progress we’re making on the Have it and Deliver it metrics. We’re expanding same-day delivery options through omnichannel capabilities and with Jet.com, and we’re adding more digitally native brands to the portfolio. We have an opportunity to improve the margin mix in this business, and we’ll do this by expanding the tail of the assortment through first-party items and marketplace.”

Access MER’s Walmart Inc. Research Report at:

Our Actionable Research on J. C. Penney Company, Inc. (NYSE: JCP) and Walmart Inc. (NYSE: WMT) can be downloaded free of charge at MarketEdge Report.

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