The 10-second takeaway
For the quarter ended May 4 (Q1), Big Lots met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share contracted. GAAP earnings per share shrank.
Margins shrank across the board.
Big Lots logged revenue of $1.31 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $1.32 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.61. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.61 per share. Non-GAAP EPS of $0.61 for Q1 were 10% lower than the prior-year quarter's $0.68 per share. GAAP EPS of $0.56 for Q1 were 11% lower than the prior-year quarter's $0.63 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 39.4%, 60 basis points worse than the prior-year quarter. Operating margin was 4.3%, 150 basis points worse than the prior-year quarter. Net margin was 2.5%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $5.49 billion. The average EPS estimate is $3.16.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 407 members out of 496 rating the stock outperform, and 89 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Big Lots a green thumbs-up, and 27 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 $37.75.
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