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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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. The Motley Fool owns shares of Big Lots. 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.