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Big Lots (BIG) to Report Q2 Earnings: What's in Store?
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Big Lots Inc. (BIG - Free Report) is slated to report second-quarter fiscal 2016 results on Aug 26, before the opening bell.
In the preceding quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 15.5%. Notably, Big Lots has outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 8.5%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Big Lots is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Big Lots has an Earnings ESP of -2.22%, as the Most Accurate estimate stands at 44 cents, while the Zacks Consensus Estimate is pegged higher at 45 cents. While the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Big Lots’ impressive earnings surprise history and comparable-store sales growth in the past nine straight quarters clearly suggest that the company’s strategic moves are well on track. The company’s furniture financing programs as well as the food and consumables categories have also been consistently gaining market traction. The response toward furniture financing has been impressive, and the company has been expanding assortments in this category.
Management anticipates comps to increase in the low-single-digit range in fiscal 2016. However, for second-quarter fiscal 2016, the company expects comps to be in the range of flat to up 2%, compared with 2.8% recorded in the year-ago quarter and 3% registered in the first quarter.
However, Big Lots, which operates in a highly competitive discount retail business, faces stiff competition from other general merchandise, discount, food, dollar store and online retailers. This may result in loss of market share as well as fall in sales and operating margins.
Stocks Poised to Beat Earnings
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Sanderson Farms, Inc. has an Earnings ESP of +4.96% and a Zacks Rank #1.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #2.
Smith & Wesson Holding Corporation has an Earnings ESP of +1.89% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Big Lots (BIG) to Report Q2 Earnings: What's in Store?
Big Lots Inc. (BIG - Free Report) is slated to report second-quarter fiscal 2016 results on Aug 26, before the opening bell.
In the preceding quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 15.5%. Notably, Big Lots has outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 8.5%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Big Lots is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Big Lots has an Earnings ESP of -2.22%, as the Most Accurate estimate stands at 44 cents, while the Zacks Consensus Estimate is pegged higher at 45 cents. While the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
BIG LOTS INC Price and EPS Surprise
BIG LOTS INC Price and EPS Surprise | BIG LOTS INC Quote
Factors Influencing this Quarter
Big Lots’ impressive earnings surprise history and comparable-store sales growth in the past nine straight quarters clearly suggest that the company’s strategic moves are well on track. The company’s furniture financing programs as well as the food and consumables categories have also been consistently gaining market traction. The response toward furniture financing has been impressive, and the company has been expanding assortments in this category.
Management anticipates comps to increase in the low-single-digit range in fiscal 2016. However, for second-quarter fiscal 2016, the company expects comps to be in the range of flat to up 2%, compared with 2.8% recorded in the year-ago quarter and 3% registered in the first quarter.
However, Big Lots, which operates in a highly competitive discount retail business, faces stiff competition from other general merchandise, discount, food, dollar store and online retailers. This may result in loss of market share as well as fall in sales and operating margins.
Stocks Poised to Beat Earnings
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Sanderson Farms, Inc. has an Earnings ESP of +4.96% and a Zacks Rank #1.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #2.
Smith & Wesson Holding Corporation has an Earnings ESP of +1.89% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>