The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Big Lots met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Big Lots reported revenue of $1.13 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $1.14 billion on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $1.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.10. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.24 per share. GAAP EPS were -$0.10 for Q3 versus $0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.1%, 90 basis points worse than the prior-year quarter. Operating margin was -0.6%, 140 basis points worse than the prior-year quarter. Net margin was -0.5%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.77 billion. On the bottom line, the average EPS estimate is $2.01.
Next year's average estimate for revenue is $5.43 billion. The average EPS estimate is $2.89.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 396 members out of 487 rating the stock outperform, and 91 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Big Lots a green thumbs-up, and 31 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Big Lots is hold, with an average price target of $35.20.
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