Back to top

Analyst Blog

Big Lots Inc. (BIG - Free Report) is scheduled to report third-quarter fiscal 2016 results on Dec 2, before the opening bell.

In the preceding quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 15.6%. Notably, Big Lots surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 8%. Let’s see how things are shaping up prior to 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 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors Influencing this Quarter

Big Lots’ impressive earnings surprise history, comparable-store sales growth in the past ten straight quarters and an encouraging earnings outlook for fiscal 2016 are clear indicators of the company’s strategic endeavors being well on track to continue the momentum. Further, the company’s furniture financing programs as well as the food and consumables categories have been consistently gaining traction.

In fiscal 2016, management anticipates comps to increase in the range of 1% to 2% in comparison to previous guidance in the low-single-digit range. The company anticipates sales to increase slightly. For the fiscal third quarter, the company expects adjusted loss of 4 cents to adjusted profit of a penny per share. Comps are expected to be in the range of flat to up 2%.

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. Consequently this is likely to result in loss of market share as well as fall in sales and operating margins.

BIG LOTS INC Price, Consensus and EPS Surprise

 

BIG LOTS INC Price, Consensus and EPS Surprise | BIG LOTS INC Quote

Other Stocks that Warrant a Look

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. (SAFM - Free Report) has an Earnings ESP of +4.48% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ascena Retail Group Inc. (ASNA - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of +14.29%.

Express Inc. (EXPR - Free Report) has an Earnings ESP of + 8.33% and also carries a Zacks Rank #3.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

SANDERSON FARMS (SAFM) - free report >>

EXPRESS INC (EXPR) - free report >>

ASCENA RETAIL (ASNA) - free report >>

BIG LOTS INC (BIG) - free report >>