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Big Lots (BIG) to Post Q4 Earnings: What's in the Cards?
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Big Lots Inc. (BIG - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Mar 3, before the opening bell. In the preceding quarter, the company’s earnings surpassed the Zacks Consensus Estimate by a whopping 300%. Notably, Big Lots has surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 83%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is, whether Big Lots will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $2.23, reflecting a year-over-year increase of over 11%. We note that the Zacks Consensus Estimate have been stable in the last 60 days. Analysts polled by Zacks expect revenues of $1,590 million, up 0.4% from the year-ago quarter.
We noted that the stock has outperformed the Zacks categorized Retail-Discount & Variety industry in the past one year and the S&P 500 Index. In the past one year, the company’s shares have gained 31.6%, while the Zacks categorized industry and the S&P 500 have witnessed gains of 7.5% and 21.6%, respectively.
Factors at Play
Big Lots’ furniture financing programs as well as the food and consumables categories have been consistently gaining traction. Notably, response has been impressive for furniture financing. Furniture, which has been the leading performer in the past few quarters, increased in mid-single digits in third-quarter fiscal 2016 driven by higher demand for mattresses, upholstery and case goods. Further, it is expected to carry the momentum in to the quarter to be reported also. Moreover, the company’s management has been expanding assortments in this category by including lawn and garden items, such as patio furniture, gazebos and gas grills.
For the fiscal, adjusted earnings per share are projected in the band of $3.55 to $3.60 compared with the previous guidance of $3.45 to $3.55. This compares with $3.01 per share recorded in fiscal 2015. In fiscal 2016, comps are anticipated to increase in the range of 1% to 2%. The company expects sales to increase slightly. Additionally, it anticipates cash flow generation of $195 million in fiscal 2016, down from the previous estimate of $210 million.
For the fiscal fourth quarter, the company continues to expect earnings per share from continuing operations in the range of $2.18 to $2.23 per share. Comps are anticipated to be in the range of flat to up 2%.
What the Zacks Model Unveils?
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 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.23. While the company’s Zacks Rank #2 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Panera Bread Company has an Earnings ESP of +0.56% and a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.
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Big Lots (BIG) to Post Q4 Earnings: What's in the Cards?
Big Lots Inc. (BIG - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Mar 3, before the opening bell. In the preceding quarter, the company’s earnings surpassed the Zacks Consensus Estimate by a whopping 300%. Notably, Big Lots has surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 83%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is, whether Big Lots will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $2.23, reflecting a year-over-year increase of over 11%. We note that the Zacks Consensus Estimate have been stable in the last 60 days. Analysts polled by Zacks expect revenues of $1,590 million, up 0.4% from the year-ago quarter.
We noted that the stock has outperformed the Zacks categorized Retail-Discount & Variety industry in the past one year and the S&P 500 Index. In the past one year, the company’s shares have gained 31.6%, while the Zacks categorized industry and the S&P 500 have witnessed gains of 7.5% and 21.6%, respectively.
Factors at Play
Big Lots’ furniture financing programs as well as the food and consumables categories have been consistently gaining traction. Notably, response has been impressive for furniture financing. Furniture, which has been the leading performer in the past few quarters, increased in mid-single digits in third-quarter fiscal 2016 driven by higher demand for mattresses, upholstery and case goods. Further, it is expected to carry the momentum in to the quarter to be reported also. Moreover, the company’s management has been expanding assortments in this category by including lawn and garden items, such as patio furniture, gazebos and gas grills.
For the fiscal, adjusted earnings per share are projected in the band of $3.55 to $3.60 compared with the previous guidance of $3.45 to $3.55. This compares with $3.01 per share recorded in fiscal 2015. In fiscal 2016, comps are anticipated to increase in the range of 1% to 2%. The company expects sales to increase slightly. Additionally, it anticipates cash flow generation of $195 million in fiscal 2016, down from the previous estimate of $210 million.
For the fiscal fourth quarter, the company continues to expect earnings per share from continuing operations in the range of $2.18 to $2.23 per share. Comps are anticipated to be in the range of flat to up 2%.
What the Zacks Model Unveils?
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 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.23. While the company’s Zacks Rank #2 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Big Lots, Inc. Price, Consensus and EPS Surprise
Big Lots, Inc. Price, Consensus and EPS Surprise | Big Lots, Inc. Quote
Stocks Poised to Beat Earnings Estimates
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:
Fred's, Inc. has an Earnings ESP of +15.79% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Panera Bread Company has an Earnings ESP of +0.56% and a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>