JC Penney Stock Price Loses More Than 12% On Stock Market Declines Despite Earnings Beat

Shares of J.C. Penney, a US-based department store chain, are trading more than 12% lower in New York today in line with the rest of the stock market as the worsening global sentiment weighs on the equities.

Fundamental analysis: Positive earnings report

J.C. Penney reported better-than-expected fourth-quarter earnings despite the drop in the same-store sales. Adjusted earnings per share were reported at $0.13 cents, topping market estimates of $0.06 cents.

Revenue was reported at $3.49 billion, a decrease of 7.7% from a year ago, but still enough to beat analysts’ estimates of $3.44 billion. The company also reported a sharp decline in the same-store sales of 7%, but again better than the 7.7% expected from the market. For the fiscal 2019, same-store sales declined 7.7%.

J.C. Penney also said that it expects to close an additional 6 stores this year after it shut down a total of 27 stores in 2019.

For 2020, the store chain expects same-store sales in fiscal 2020 to be negative 3.5% to negative 4.5%.

Technical analysis: New 6-month low printed

Shares of J.C. Penney are currently trading more than 12% lower as the stock market stumbles again on increased coronavirus fears. As a result, the stock price printed $0.62 today, which marks a fresh 6-month low for the stock.

As seen on the chart, the price action is now approaching the all-time low of $0.53, also recorded six months ago. If the extensive selling pressure continues before the weekend, a new all-time low is not excluded.

For any meaningful recovery to take place, the bulls need to push the price back above the $0.80 mark.

Summary

J.C. Penney stock price has joined the rest of the market in stumbling lower on the increased coronavirus fears despite the positive earnings report for the fourth-quarter. As a result, the stock price has made a new 6-month low as it threatens to print the record low below $0.53.