Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Big Lots Shares Shot Up

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of closeout retailer Big Lots (NYSE: BIG  ) took off today, gaining as much as 14% after its earnings report was better than expected and its CEO announced he will resign.

So what: Big Lots posted a loss for the quarter of $0.10 per share, but that was well ahead of analyst estimates of a $0.24 shortfall. The discount retailer has had a rough year, with shares tumbling on each its past two earnings reports. The stock had lost nearly 50% since April, but shareholders were reassured today by management's decision to raise fiscal 2012 EPS guidance to a range of $2.86 to $3.03 a share. Still, the company sees same-store sales declining in the low to mid-single digits in the fourth quarter.

CEO Steven Fishman said he is leaving the company, though that news didn't seem to affect the share price. Fishman will stay on until his successor is chosen.

Now what: Even with the increased guidance, it seems hard to put much faith into this stock. Based on the new EPS estimate, the company trades at a P/E of 11, which is a steep price for a retail chain with declining comps. Considering the discount nature of the business, the company should be doing well during a bad economy, and results could get worse as the recovery moves forward. Perhaps a new CEO could turn things around, but I'm keeping my distance for now.

Don't miss the next update on this retailer. Add Big Lots to My Watchlist.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2139588, ~/Articles/ArticleHandler.aspx, 10/21/2016 6:37:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
BIG $44.68 Up +0.07 +0.16%
Big Lots CAPS Rating: ***