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Stock Market & Financial Investment News

News Breaks
August 15, 2014
10:30 EDTJWN, M, JCP, KSSJ.C. Penney falls despite posting a narrower than expected Q2 loss
Shares of retailer J.C. Penney (JCP) are lower this morning despite posting a narrower than expected loss for the second quarter. WHAT'S NEW: J.C. Penney's Q2 adjusted earnings per share was a loss of 75c per share, which was better than analysts' consensus of a 93c loss. The company's Q2 revenue came in at $2.8B, which narrowly beat analysts' consensus of $2.79B. Same store sales for the quarter increased 6% and online sales were up 16.7% compared to the same period last year. Chief Executive Myron Ullman said that the company's turnaround initiatives continued to produce improved financial results. WHAT'S NOTABLE: Looking ahead, J.C. Penney forecast third quarter SSS to be up mid-single digits, while Q3 gross margins are expected to fall in line with Q2. SG&A expenses are anticipated to be slightly above last year's levels. For fiscal year 2014, the company expects SSS to be up mid-single digits, while gross margin is seen to improve significantly compared to last year. The retailer is expecting profitable sales this back-to-school season. ANALYST REACTION: Maxim analyst Rick Snyder said that while J.C. Penney had a quarter which surpassed expectations, he still feels that difficult comps lie ahead. Snyder said that even though the company guided free cash flow to be positive, the projection is a one-time inflow and is not likely to be repeated in the coming years. He is modeling free cash flow to be up only modestly even past the end of the year. The firm maintains a Hold rating on the stock. Piper Jaffray analyst Neely Tamminga said that a company turnaround is "very much underway" and that it is poised to regain $2B-$3B of its $6B revenue loss after a management shift. He continues to feel that the retailer is positioned to improve cash flow, sales and margins over time. Tamminga believes that the retailers' positive outlook for Q3 comps indicate an optimistic outlook for back-to-school season. The firm keeps an Overweight rating on the shares with a price target of $12. Wells Fargo analyst Paul Lejuez said that even though gross margin comps proved notably and gross profit dollars increased by 25%, he feels that there isn't any reason why anyone should "get too excited" about J.C. Penney since they lost 73c per share excluding the gain on sale of land. He maintains his opinion that the current valuation is stretched and keeps an Underperform rating on the company's shares with a $5-$6 price target. PRICE ACTION: In morning trading, J.C. Penney fell 26c, or 2.67%, to $9.48, reversing earlier gains. The stock has lost approximately 32% over the past twelve months. OTHERS TO WATCH: J.C. Penney peer Macy's (M), which reported its earnings earlier this week, is down almost 1% this morning, while Nordstrom (JWN), which reported in-line results yesterday, is down almost 4%. Kohlís (KSS) is down 0.7%.
News For JCP;JWN;KSS;M From The Last 14 Days
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July 30, 2015
07:44 EDTMMacy's volatility flat into Q2 and outlook
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July 28, 2015
10:00 EDTMOn The Fly: Analyst Downgrade Summary
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09:00 EDTMMacy's downgraded to Sell due to 'speculative froth' at Gilford Securities
As previously reported, Gilford Securities downgraded Macy's two notches to Sell from Buy. Analyst Bernard Sosnick would use the "speculative froth" in the stock to take profits at attractive prices. Macy's shares rose to a high when Starboard Value announced its belief that Macy's is worth $125 per share based on real estate monetization. Sosnick believes its a "fool's errand" to hold on to shares for real estate value extraction and expects the speculative premium in the stock to disappear.
08:45 EDTMMacy's downgraded to Sell from Buy at Gilford Securities
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July 27, 2015
09:08 EDTJWNNordstrom expands Madewell partnership to 15 additional stores
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July 24, 2015
10:00 EDTMOn The Fly: Analyst Downgrade Summary
Today's noteworthy downgrades include: Abaxis (ABAX) downgraded to Hold from Buy at Canaccord... Buffalo Wild Wings (BWLD) downgraded to Neutral from Buy at Dougherty... CF Industries (CF) downgraded on nitrogen outlook at RBC Capital... Capital One (COF) downgraded to Neutral from Overweight at JPMorgan... Cepheid (CPHD) downgraded to Sell from Hold at Evercore ISI... Constant Contact (CTCT) downgraded to Neutral from Outperform at Baird... Equifax (EFX) downgraded to Neutral from Outperform at Baird... Hannover Re (HVRRY) downgraded to Underweight from Neutral at JPMorgan... IAMGOLD (IAG) downgraded to Underperform from Market Perform at Raymond James... MSA Safety (MSA) downgraded to Neutral from Accumulate at Global Hunter... MTU Aero (MTUAY) downgraded to Underperform from Buy at BofA/Merrill... Macy's (M) downgraded to Underweight from Neutral at Atlantic Equities... Sunesis (SNSS) downgraded to Hold from Buy at Cantor... Superior Drilling (SDPI) downgraded to Hold from Buy at Wunderlich... TrueCar (TRUE) downgraded to Equal Weight from Overweight at Stephens... United Rentals (URI) downgraded to Outperform from Top Pick at RBC Capital... WESCO (WCC) downgraded to Equal Weight from Overweight at Stephens.
06:45 EDTMMacy's downgraded to Underweight from Neutral at Atlantic Equities
Atlantic Equities analyst Danlela Nedlalkova downgraded Macy's to Underweight with a $64 price target based on expectations of weaker topline trends. Nedlalkova said recent industry commentary and data and global tourist spending decline will likely weigh on Q2 results. The analyst believes annual comp guidance of 2% is likely optimistic with Q1 comps at (0.1%) and expectations for about a flat comp in Q2, indicating 2H comps need to accelerate to 3%-4% to meet guidance. Nedlalkova said shares have been supported by speculation of real estate monetization, but with shares at historic levels, the analyst expects weaker operating results to pressure the stock.
July 22, 2015
10:01 EDTJCPOn The Fly: Analyst Upgrade Summary
Today's noteworthy upgrades include: AMC Entertainment (AMC) upgraded to Buy at MKM Partners... Agnico Eagle (AEM) upgraded to Buy from Hold at HSBC... Allegiant Travel (ALGT) upgraded to Outperform from Market Perform at Raymond James... Amazon.com (AMZN) upgraded on positive outlook at JMP Securities... Bank of Ireland (IRE) upgraded to Buy from Neutral at Nomura... Canadian Pacific (CP) upgraded to Buy at Canaccord... Carrizo Oil & Gas (CRZO) upgraded to Outperform from Neutral at Credit Suisse... Concho Resources (CXO) upgraded to Outperform from Neutral at Credit Suisse... Crown Castle (CCI) upgraded to Buy from Neutral at Citi... Exxon Mobil (XOM) upgraded to Conviction Buy from Buy at Goldman... Fidelity & Guaranty Life (FGL) upgraded to Outperform from Neutral at Macquarie... First Interstate (FIBK) upgraded to Buy from Hold at Sandler O'Neill... Hess Corp. (HES) upgraded to Outperform from Neutral at Credit Suisse... Intuitive Surgical (ISRG) upgraded to Buy at Canaccord... J.C. Penney (JCP) upgraded to Buy from Neutral at Buckingham... Murphy Oil (MUR) upgraded to Neutral from Underperform at Credit Suisse... Noble Energy (NBL) upgraded to Outperform at Credit Suisse... Packaging Corp. (PKG) upgraded to Outperform from Market Perform at BMO Capital... Prologis (PLD) upgraded to Outperform from Neutral at Baird... Signature Bank (SBNY) upgraded to Strong Buy from Outperform at Raymond James... Sonic Automotive (SAH) upgraded to Buy from Neutral at BofA/Merrill... Tate & Lyle (TATYY) upgraded to Neutral from Sell at Goldman... Technip (TKPPY) upgraded to Neutral from Sell at Goldman... Union Bankshares (UBSH) upgraded to Buy from Neutral at Compass Point... Yamana Gold (AUY) upgraded to Buy from Hold at HSBC... Yara (YARIY) upgraded to Neutral from Underweight at JPMorgan.
08:38 EDTJCP, KSS, JWN, MNRF cuts 2015 retail sales growth forecast to 3.5% from 4.1%
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08:09 EDTJCPJ.C. Penney upgraded to Buy from Neutral at Buckingham
Buckingham upgraded J.C. Penney to Buy and increased its price target to $12 from $9. The firm believes 2H comps could accelerate as initiatives take hold and has increased confidence it the company's ability to hit its 2017 EBITDA target of $1.2B. Buckingham believes FY15 sales comp guidance of 4%-5% is achievable and sees continued gross margin improvement and reduced SG&A levels.
July 20, 2015
13:46 EDTMAmazon seen eclipsing Macy's as top U.S. clothing retailer
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08:08 EDTMMacy's price target to $78 on likelihood of a REIT transaction at BofA/Merrill
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July 19, 2015
18:13 EDTMMacy's considered, rejected sale/lease-backs in past, WSJ says
Macy's (M) executives have considered sale/lease-backs "over the years" and have come to negative conclusions, reports the Wall Street Journal, citing people familiar with the company. The report comes in the wake of Starboard Value pressuring Macy's to spin off its real estate, and sources said the activist investor sees several options, including a REIT, a Hudsonís Bayís-style real estate partnership, a sale/lease-back, or borrowing money against the properties. Separately, a source said Target (T) is still reluctant to relinquish control over its real estate. Reference Link

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