Today, J.C. Penney will release its second quarter financial results. According to analysts surveyed by Bloomberg, the company should report a loss of $1.20 per share and revenues of $2.78 billion. This would be the company’s second round of dismal financial results during its current fiscal year.
In addition, many financial specialists, including Mr. Michael Binetti, an executive director at UBS Investment Bank, believe that the company will continue to run through its cash. Mr. Binetti anticipates that J.C. Penney will burn through $910 million in cash between the company’s second quarter and the remainder of the year. As an organization, J.C. Penney has fallen on rough times, but strong earnings from the back to school season could help minimize the company's projected cash flow losses.
Last week, the company’s board of directors received the resignation of Mr. Bill Ackman, a famous hedge fund manager and replaced him with Mr. Ronald W. Tysoe, a former vice chairman at Macy’s. Ultimately, the company expects the board changes will help the organization to move in one direction, with the hopes of returning to profitability in the near term.
Yesterday, J.C. Penney’s stock (NYSE: JCP) closed at $13.22 per share, a drop of 1.34% during the trading session.