Stock Market Today: Big Lots Surprises and Lions Gate Disappoints

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) has lost 17 points in pre-market trading, suggesting a flat start for stocks today. Still, the Dow could easily close out the month on a high note: the average is just 0.1%, or 16 points, below the record high it set on May 13. 

Meanwhile, Big Lots (NYSE: BIG  ) and Lions Gate Entertainment (NYSE: LGF  ) stocks are on the move this morning after the companies delivered their quarterly earnings numbers.

Big Lots today posted better than expected earnings results for its fiscal first quarter while boosting its outlook for the full year. The closeout retailer's revenue ticked higher by 1.1% to $1.28 billion, which was just ahead of the $1.26 billion that Wall Street was targeting. Big Lots saw comparable-store sales growth of 1%, for a nice turnaround from the 3% drop it booked a quarter back. Profit also came in ahead of estimates, although it shrank to $0.50 a share from last year's $0.70 haul. Looking ahead, the company said it now expects comparable-store sales growth in the range of 1% to 3%, up from a prior forecast of between 0% and 2%. Big Lots also expects annual profit of roughly $2.42 a share, or a bit higher than the $2.35 that analysts were looking for. The stock was up 12.6% in pre-market trading.

Lions Gate shares were down nearly 6% in pre-market trading after the company last night posted a surprising drop in revenue. Quarterly sales were $721 million, compared to last year's $786 million and Wall Street's expectation for $827 million in revenue. Still, the entertainment company beat analysts' profit forecasts for the fifth quarter in a row by booking earnings of $0.46 a share.

That revenue shortfall may have been partly due to the company's hit film Divergent being released just 10 days prior to the quarter's close, which didn't leave much time for the movie to make big sales contributions. Still, CEO Jon Feltheimer sounded an optimistic tone about the future, saying in a press release that the company has laid the groundwork for solid growth thanks to "the depth of our content pipelines and the ongoing generation of predictable income from film franchises, television properties and filmed entertainment library."

Profit from this content shift
More and more hit TV content is being delivered directly to consumers. You know that means cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 


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.

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: 2976793, ~/Articles/ArticleHandler.aspx, 9/3/2015 3:14:43 AM

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...

Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

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

9/2/2015 4:36 PM
^DJI $16351.38 Up +293.03 +1.82%
BIG $47.08 Up +0.22 +0.47%
Big Lots CAPS Rating: ***
LGF $37.05 Up +0.85 +2.35%
Lions Gate Enterta… CAPS Rating: ****