What Is Driving JC Penney Shares Down Ahead of Earnings?

By Chris Lange Updated Jan 12, 2:52AM EST · Published Mar 1, 12:35PM EST

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What Is Driving JC Penney Shares Down Ahead of Earnings? — © Thinkstock

J.C. Penney Co. Inc. (NYSE: JCP) saw its shares drop on Thursday despite no major news for the company coming out. Although its earnings report is expected on Friday morning, there don’t seem to be any internal factors punishing the stock. So what’s sending shares of this struggling retailer down even further?

Perhaps the main driver is the Kohl’s Corp. (NYSE: KSS) earnings report. Even though Kohl’s beat estimates on both the top and the bottom lines (and guidance as well), the stock was still decidedly down.

Earlier this week we saw Macy’s Inc. (NYSE: M) release its most recent report as well, and J.C. Penney soared about 10% in response but quickly surrendered this gain.

It seems that J.C. Penney investors are looking to other retailers for any possible clue of what to expect for the report on Friday morning. Analysts are calling for $0.47 in earnings per share (EPS) on $4.05 billion in revenue for the fiscal fourth quarter. The same period of last year reportedly had EPS of $0.64 and $3.96 billion in revenue.

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While J.C. Penney may be everyone’s favorite retailer to pick on, there may be another major mover to look forward to. Nordstrom Inc. (NYSE: JWN) is reporting its fourth-quarter results after the markets close Thursday. Thomson Reuters is calling for $1.24 in EPS on revenue of $4.62 billion. In the same period of last year, it posted EPS of $1.27 and $4.32 billion in revenue.

Shares of JC Penney were last seen down about 5% at $4.10 on Thursday, with a consensus analyst price target of $3.95 and a 52-week trading range of $2.35 to $6.48.

Kohl’s shares were down about 7% at $61.59, in a 52-week range of $35.16 to $69.48 and with a consensus price target of $65.47.

Macy’s was down about 0.5% at $29.27 a share. The stock has a consensus price target of $29.53, and its 52-week range is $17.41 to $33.32.

Shares of Nordstrom traded down 2% to $50.33. The 52-week range is $37.79 to $50.87, and the consensus analyst target is $49.76.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.