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Big Lots (BIG) to Report Q1 Earnings:Is a Beat in Store?
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Big Lots, Inc. (BIG - Free Report) is scheduled to release first-quarter fiscal 2017 results on May 26, before the opening bell. The big question facing investors is whether this broad-line closeout retailer would be able to post positive earnings surprise in the quarter to be reported. In the trailing four quarters, it has outperformed the Zacks Consensus Estimate by an average of 83.1%. In the preceding quarter, the company witnessed a positive earnings surprise of 1.4%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The current Zacks Consensus Estimate for the quarter under review is $1.00 compared with 82 cents reported in the year-ago period. Notably, the Zacks Consensus Estimate has been stable lately.
However, for the first-quarter analysts polled by Zacks expect revenues of $1,311 million down slightly by 0.1% from the year-ago quarter.
Big Lots forms part of the Retail-Wholesale sector, which occupies a space in the bottom 25% of the Zacks Classified sectors (12 out of 16). As per the latest Earnings Preview report, total earnings and revenues for the sector are anticipated to increase 0.8% and 3.4%, respectively. We noted that the Retail-Wholesale sector has outperformed the broader market in the past three months. This Zacks categorized sector gained 7.2%, while the S&P 500 index advanced only 0.9%.
Our proven model shows that Big Lots is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Most Accurate estimate is at $1.02 cents and the Zacks Consensus Estimate is pegged lower at $1.00. So the ensuing +2.00% ESP and the company’s Zacks Rank #2 makes us reasonably confident of an earnings beat.
Factors at Play
The company's strategic endeavors, recent uptrend in the gross margin and positive earnings surprise streak in the last five quarters, are evidence of Big Lots robust performance. Moreover, the company’s furniture financing programs as well as the food and consumables categories have been gaining traction consistently. Further, to capitalize on the opportunities presented by these two categories, management added more brands and revamped the food department. Furthermore, for the first quarter, the company anticipates earnings in the band of 95 cents to $1.05, reflecting a 16–28% rise from the year-ago period.
However, the company’s dismal top-line performance in the trailing three quarters has been a cause of worry. A challenging retail landscape, aggressive promotional strategies and waning store traffic are probably weighing on the performance.
Big Lots also underperformed the Zacks categorized Retail-Discount & Variety industry in the past one year. The company’s shares have decreased 10.1%, wider than the industry’s decline of 4.6%.
Other Stocks Poised to Beat Earnings Estimates
Here are some more companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Burlington Stores, Inc. (BURL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +2.86%.
Best Buy Co., Inc. (BBY - Free Report) has a Zacks Rank #2 and an Earnings ESP of +10.00%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Big Lots (BIG) to Report Q1 Earnings:Is a Beat in Store?
Big Lots, Inc. (BIG - Free Report) is scheduled to release first-quarter fiscal 2017 results on May 26, before the opening bell. The big question facing investors is whether this broad-line closeout retailer would be able to post positive earnings surprise in the quarter to be reported. In the trailing four quarters, it has outperformed the Zacks Consensus Estimate by an average of 83.1%. In the preceding quarter, the company witnessed a positive earnings surprise of 1.4%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The current Zacks Consensus Estimate for the quarter under review is $1.00 compared with 82 cents reported in the year-ago period. Notably, the Zacks Consensus Estimate has been stable lately.
However, for the first-quarter analysts polled by Zacks expect revenues of $1,311 million down slightly by 0.1% from the year-ago quarter.
Big Lots forms part of the Retail-Wholesale sector, which occupies a space in the bottom 25% of the Zacks Classified sectors (12 out of 16). As per the latest Earnings Preview report, total earnings and revenues for the sector are anticipated to increase 0.8% and 3.4%, respectively. We noted that the Retail-Wholesale sector has outperformed the broader market in the past three months. This Zacks categorized sector gained 7.2%, while the S&P 500 index advanced only 0.9%.
Big Lots, Inc. Price, Consensus and EPS Surprise
Big Lots, Inc. Price, Consensus and EPS Surprise | Big Lots, Inc. Quote
What Does the Zacks Model Say?
Our proven model shows that Big Lots is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Most Accurate estimate is at $1.02 cents and the Zacks Consensus Estimate is pegged lower at $1.00. So the ensuing +2.00% ESP and the company’s Zacks Rank #2 makes us reasonably confident of an earnings beat.
Factors at Play
The company's strategic endeavors, recent uptrend in the gross margin and positive earnings surprise streak in the last five quarters, are evidence of Big Lots robust performance. Moreover, the company’s furniture financing programs as well as the food and consumables categories have been gaining traction consistently. Further, to capitalize on the opportunities presented by these two categories, management added more brands and revamped the food department. Furthermore, for the first quarter, the company anticipates earnings in the band of 95 cents to $1.05, reflecting a 16–28% rise from the year-ago period.
However, the company’s dismal top-line performance in the trailing three quarters has been a cause of worry. A challenging retail landscape, aggressive promotional strategies and waning store traffic are probably weighing on the performance.
Big Lots also underperformed the Zacks categorized Retail-Discount & Variety industry in the past one year. The company’s shares have decreased 10.1%, wider than the industry’s decline of 4.6%.
Other Stocks Poised to Beat Earnings Estimates
Here are some more companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Papa Murphy's Holdings, Inc. (FRSH - Free Report) flaunts a Zacks Rank #1 and has an Earnings ESP of +12.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores, Inc. (BURL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +2.86%.
Best Buy Co., Inc. (BBY - Free Report) has a Zacks Rank #2 and an Earnings ESP of +10.00%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>