The 10-second takeaway
For the quarter ended April 28 (Q1), Big Lots met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins dropped across the board.
Big Lots reported revenue of $1.29 billion. The 14 analysts polled by S&P Capital IQ hoped for a top line of $1.30 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $1.23 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 $0.68. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS of $0.63 for Q1 were 10% lower than the prior-year quarter's $0.70 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 39.6%, 70 basis points worse than the prior-year quarter. Operating margin was 5.3%, 170 basis points worse than the prior-year quarter. Net margin was 3.1%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $5.58 billion. The average EPS estimate is $3.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 363 members out of 451 rating the stock outperform, and 89 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Big Lots a green thumbs-up, and 29 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 $45.55.
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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.