Earnings Highlights and Review: Big Lots’ Earnings Surged 40%; Exceeded Expectations

Research Desk Line-up: Fred’s Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Big Lots, Inc. (NYSE: BIG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BIG, following the Company’s reporting of its first quarter fiscal 2017 financial results on May 26, 2017. The discount retailer topped earnings for the sixth straight quarter and updated its earnings outlook for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Discount, Variety Stores industry. Pro-TD has currently selected Fred’s, Inc. (NASDAQ: FRED) for due-diligence and potential coverage as the Company reported on June 06, 2017, its financial results for Q1 2017 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Fred’s when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BIG; also brushing on FRED. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the first quarter of fiscal 2017 ended April 29, 2017, Big Lots reported that net sales fell 1.2% to $1.30 billion compared to $1.31 billion in Q1 2016, attributable to a decline in comparable store sales and a lower store count on a y-o-y basis. The Company’s sales numbers slightly missed analysts’ expectation of $1.31 billion. Big Lots’ comparable store sales decreased 0.9% for Q1 2017 compared to its guidance of flat to an increase of 2%.

For Q1 2017, Big Lots posted income of $51.5 million, or $1.15 per diluted share, versus net income of $38.66 million, or $0.79 per diluted share. The Company’s income result compared to its guidance range of $0.95 to $1.05 per diluted share and represented a 40% increase over adjusted income of $40.0 million, or $0.82 per diluted share, in Q1 2016. Big Lots’ earnings numbers surpassed Wall Street’s expectations of $1.00 per share.

Balance Sheet

Big Lots’ inventory ended Q1 2017 at $836 million compared to $807 million for Q1 2016. The Company’s inventory levels per store increased compared to last year, but was partially offset by a lower store count on a y-o-y basis.

Big Lots ended Q1 2017 with $66 million of cash and cash equivalents and $116 million of borrowings under its credit facility compared to $64 million of cash and cash equivalents and $154 million of borrowings under the Company’s credit facility as of the end of Q1 2016.

On February 28, 2017, Big Lots’ Board of Directors approved a share repurchase program providing for the repurchase of up to $150 million of its common shares in the open market and/or privately negotiated transactions at our discretion, subject to market conditions and other factors. Through Q1 2017, the Company invested $34 million to purchase 0.7 million shares, meaning that approximately $116 million of authorization remain at the end of the reported quarter.

As announced in a separate press release on May 25, 2017, Big Lots’ Board of Directors declared a quarterly cash dividend of $0.25 per common share. This dividend payment of approximately $11 million is payable on June 23, 2017, to shareholders of record as of the close of business on June 09, 2017.

Outlook

For Q2 2017, Big Lots is expecting income in the range of $0.58 to $0.63 per diluted share, representing a 12% to 21% on a y-o-y basis. The Company is estimating comparable store sales increase in the low single digits

Big Lots stated that based on the actual results for Q1 2017 and the guidance provided for Q2 2017, the Company is updating its guidance for FY17. Big Lots is expecting FY17 income will be in the range of $4.05 to $4.20 per diluted share compared to the prior guidance of $3.95 to $4.10 per diluted share. This outlook is based on a comparable store sales increase in the range of 1% to 2%. The Company expects to generate cash flow of $180 million to $190 million for the fiscal year.

Stock Performance

At the close of trading session on Monday, June 19, 2017, Big Lots’ stock price was marginally up 0.58% to end the day at $48.17. A total volume of 1.12 million shares were exchanged during the session, which was above the 3-month average volume of 1.07 million shares. The Company’s stock price advanced 3.66% in the last one month. The stock is trading at a PE ratio of 13.08 and has a dividend yield of 2.08%. At Monday’s closing price, the stock’s net capitalization stands at $2.17 billion.

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