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JC Penney reports EPS up 66% & Q1 operating sales climbs 37 to 7.5% for 2005
18 May '05
6 min read
Capital Structure Repositioning
During the first quarter, the company repurchased 7.7 million shares of its common stock. Since inception of the capital structure repositioning program in August 2004, the company has repurchased approximately 58 million shares for $2.3 billion, or about 60 percent of the $3.75 billion authorized under the program. The company continues to expect to complete the program by the end of 2005. In addition, the company purchased $194 million of long-term debt in open market transactions during the first quarter. The company has authorization to repurchase an additional $56 million of its long-term debt.
Earnings Guidance
For the second quarter, comparable store sales are expected to increase low-single digits with catalog/Internet sales expected to increase low- to mid-single digits. The company expects earnings from continuing operations to be in the range of $0.25 to $0.30 per share in the second quarter, based on an average diluted share count of 263 million to 266 million shares.
For the full year management now expects earnings from continuing operations in the range of $2.96 to $3.08 per share based on 255 million to 260 million average fully diluted shares. Second quarter and full year earnings assume charges of approximately $7 million, or $0.02 per share, and $20 million, or $0.05 per share, respectively, related to premiums on open market debt retirements and $4 million, or $0.01 per share, and $33 milr $0.01 per share, and $33 million, or $0.08 per share, respectively, for the expensing of employee stock options.
During the first quarter, the company repurchased 7.7 million shares of its common stock. Since inception of the capital structure repositioning program in August 2004, the company has repurchased approximately 58 million shares for $2.3 billion, or about 60 percent of the $3.75 billion authorized under the program. The company continues to expect to complete the program by the end of 2005. In addition, the company purchased $194 million of long-term debt in open market transactions during the first quarter. The company has authorization to repurchase an additional $56 million of its long-term debt.
Earnings Guidance
For the second quarter, comparable store sales are expected to increase low-single digits with catalog/Internet sales expected to increase low- to mid-single digits. The company expects earnings from continuing operations to be in the range of $0.25 to $0.30 per share in the second quarter, based on an average diluted share count of 263 million to 266 million shares.
For the full year management now expects earnings from continuing operations in the range of $2.96 to $3.08 per share based on 255 million to 260 million average fully diluted shares. Second quarter and full year earnings assume charges of approximately $7 million, or $0.02 per share, and $20 million, or $0.05 per share, respectively, related to premiums on open market debt retirements and $4 million, or $0.01 per share, and $33 milr $0.01 per share, and $33 million, or $0.08 per share, respectively, for the expensing of employee stock options.
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