The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Big Lots met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins dropped across the board.
Big Lots logged revenue of $1.67 billion. The 12 analysts polled by S&P Capital IQ looked for sales of $1.66 billion on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $1.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.83. The 11 earnings estimates compiled by S&P Capital IQ averaged $1.73 per share on the same basis. GAAP EPS of $1.75 for Q4 were 20% higher than the prior-year quarter's $1.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.2%, 60 basis points worse than the prior-year quarter. Operating margin was 11.4%, 30 basis points worse than the prior-year quarter. Net margin was 6.9%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $5.54 billion. The average EPS estimate is $3.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 356 members out of 445 rating the stock outperform, and 89 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Big Lots a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Big Lots is outperform, with an average price target of $43.91.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.