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3 Stocks to Watch on Friday: J C Penney Company Inc (JCP), Snap Inc (SNAP) and Nordstrom, Inc. (JWN)

JWN same-store sales grew, JCP is tumbling and SNAP's earnings underwhelm

   

U.S. stocks had a miserable day Thursday as tensions continue to rise with North Korea. The S&P 500 Index slipped 1.5%, the Dow Jones Industrial Average fell 0.9% and the Nasdaq Composite fell 2.1%.

3 Stocks to Watch on Friday: J C Penney Company Inc (JCP), Snap Inc (SNAP) and Nordstrom, Inc. (JWN)Several companies posted their quarterly earnings data after the bell Thursday and during pre-market hours Friday morning, including Nordstrom, Inc. (NYSE:JWN), J C Penney Company Inc (NYSE:JCP) and Snap Inc (NYSE:SNAP).

Here’s what you should know:

J C Penney Company Inc

JCP shares joined the likes of Kohl’s Corporation (NYSE:KSS) and Macy’s Inc (NYSE:M) by plunging following the company’s earnings report.

JCPenney announced a worse-than-expected second-quarter loss of $62 million (20 cents per share), which was wider than the year-ago period’s $56 million loss. On an adjusted basis, JCP’s loss of 9 cents per share was more than double Wall Street’s estimate for 4 cents in red ink.

The company did manage to report an uptick in revenues, by $40 million to $2.96 billion, which was good enough to get past expectations for $2.84 billion. However, that came on a comparable-store sales decline of 1.3%. Encouraging, though, was a 6.8% year-over-year decline in inventory, to $2.8 billion.

JCPenney also reaffirmed its outlook for EPS between 40 cents and 65 cents per share, with the midpoint coming in ahead of Wall Street expectations for 49 cents.

Nonetheless, today is going to be an ugly day for the retailer. After the company took an 8%-plus bath Thursday on the back of poor results by Kohl’s and Macy’s, JCP stock is tracking nearly 15% declines heading into Friday’s opening bell.

That will extend JCP’s already painful 43% year-to-date drop, and put shares in territory last seen in the early 1980s.

Nordstrom, Inc. (JWN)

Nordstrom unveiled its second-quarter earnings yesterday.

The retailer posted profit of 65 cents per share, ahead of expectations by 1 cent. The figure was below the year-ago earnings of 67 cents per share.

JWN revenue came in at $3.79 billion, which was also stronger than Wall Street’s expectations of $3.75 billion, per Thomson Reuters. Meanwhile, net sales rose 3.5% year-over-year.

Nordstrom’s same-store sales grew 1.7% YOY, compared to analysts’ forecast of a 0.4% drop for full-line and Rack stores.

The company enjoyed a 20% increase in sales growth from its main website, while Nordstromrack.com saw a 27% sales increase. Nordstrom Rack will have 232 locations by the end of the year.

The retailer predicts that it will earn between $2.85 to $3 per share for the fiscal year, higher than its previous estimate of $2.75 to $3 per share.

JWN stock grew 3.4% after hours.

Snap Inc (SNAP)

Snap unveiled its latest quarterly earnings results Thursday.

The image-sharing services provider posted earnings at a loss of 16 cents per share on an adjusted basis, wider than the consensus estimate of a 14-cent loss. The figure was a $443 million loss, while SNAP only lost $116 million in the year-ago quarter.

Second-quarter revenue came in at $181.7 million, below analysts’ projections of $186.2 million, according to Thomson Reuters. The figure was a 153% increase year-over-year.

Daily active users (DAUs) increased to 173 million, 2.2 million below StreetAccount‘s estimate. Average revenue per user (ARPU) was $1.05, again below the $1.07 FactSet projection.

Despite this miss, the ARPU figure was a considerable improvement over the year-ago ARPU of 50 cents, marking a 109% increase.

SNAP stock plummeted 15.8% after Thursday’s market close.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/3-stocks-to-watch-on-friday-j-c-penney-company-inc-jcp-snap-inc-snap-and-nordstrom-inc-jwn/.

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