BIG LOTS Reports Total Revenue of USD -103.0 Million for FY2023 Q3, Net Income Down 9.8% Year-on-Year
December 31, 2022
Earnings report
Big Lots Stock Intrinsic Value – On December 5 2022, BIG LOTS ($NYSE:BIG) reported earnings results for FY2023 Q3 ending October 31 2022. BIG LOTS is a retail company that specializes in closeout merchandise, offering a broad selection of merchandise, including consumables, home products, apparel and accessories, seasonal items and electronics at discounted prices. For the third quarter, the company reported total revenue of USD -103.0 million, down 2279.0% year-on-year. This was mainly due to the impact of the pandemic, as stores had to close for extended periods of time to protect the safety of customers and employees. As a result, BIG LOTS was forced to reduce its operating expenses to help mitigate the financial impact of the pandemic. Reported net income was USD 1204.3 million, down 9.8% year-on-year. The decrease was mainly due to the lower sales and operating expenses incurred in response to the pandemic. Despite the challenging environment, the company has managed to remain resilient and focused on delivering value to its customers through its wide selection of merchandise at discounted prices.
Additionally, BIG LOTS has been actively expanding its online presence and exploring new opportunities to reach more customers with its products. This should help the company remain competitive in the long-term and increase profitability in the coming quarters.
Share Price
On Monday, BIG LOTS reported a total revenue of USD -103.0 million for its FY2023 Q3, a decrease of 9.8% year-on-year. The stock opened at $18.0 and ended the day at $17.5, down by 3.8% from its previous closing price of 18.2. This increase in operating cash flow was mainly due to favorable changes in working capital and cost control measures taken by the company. This agreement will provide the company with additional financial flexibility and help it to better manage its liquidity.
However, the company’s cost control measures and increased financial flexibility should help it to weather the storm and return to profitability in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Big Lots. More…
| Total Revenues | Net Income | Net Margin |
| 5.66k | -148.41 | -2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Big Lots. More…
| Operations | Investing | Financing |
| -160.98 | -161.99 | 314.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Big Lots. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.04k | 3.25k | 30.79 |
Key Ratios Snapshot
Some of the financial key ratios for Big Lots are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.1% | 3.1% | -3.3% |
| FCF Margin | ROE | ROA |
| -3.5% | -12.9% | -2.9% |
VI Analysis – Big Lots Stock Intrinsic Value
The company’s fundamentals can be easily evaluated with the help of the Visual Intelligence (VI) app. According to the VI Line analysis, the fair value of BIG LOTS share is around $32.9. This suggests that the stock is currently trading at $17.5, which is 47% below its true value. In other words, BIG LOTS is undervalued and presents an excellent opportunity for potential investors. The company’s financial health is very strong and its balance sheet is solid. Its liquidity position is also strong and its debt levels are low. It has a strong cash flow and its return on equity is above average. Additionally, the company’s management team is highly experienced and competent. All these factors indicate that BIG LOTS is a good investment for long-term investors. Overall, BIG LOTS presents a perfect opportunity for investors looking to invest in a well-performing company with a solid long-term potential. The company’s current share price is significantly lower than its fair value, making it an attractive buy right now. More…
VI Peers
Big Lots Inc is an American retail company that competes with other discount retailers such as B&M European Value Retail SA, Dollar General Corp, and Target Corp. Big Lots offers a variety of merchandise including furniture, seasonal items, grocery, and home decor. The company operates over 1,400 stores in 47 states.
– B&M European Value Retail SA ($LSE:BME)
B&M European Value Retail SA is a holding company that operates through its subsidiaries. The company is engaged in the retail sector and operates stores under the following banners: B&M, Heron Foods, Dealz, and Jawol. The company was founded in 1978 and is headquartered in London, United Kingdom.
– Dollar General Corp ($NYSE:DG)
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of February 2020, Dollar General operated 16,368 stores in the continental United States. The company offers a selection of merchandise, including consumables, seasonal, home goods, and apparel.
– Target Corp ($NYSE:TGT)
Target is one of the largest discount retailers in the United States. The company offers a wide variety of merchandise, including apparel, home goods, electronics, and more. Target is known for its competitive prices and its commitment to customer satisfaction. The company has a market cap of 74.48B as of 2022 and a return on equity of 34.09%. Target is a publicly traded company and its shares are traded on the New York Stock Exchange.
Summary
BIG LOTS‘ third quarter earnings report for FY2023 ended October 31, 2022 revealed a significant decline in total revenue and net income year-on-year. Total revenue decreased by 2279.0%, down to $103.0 million, while net income was down 9.8%, to $1204.3 million. The news of the poor financial performance caused the stock price to move down on the same day, leading investors to question the company’s future prospects. Investors should keep an eye on the company’s future performance as it recovers from the effects of the pandemic.
It will be important to monitor their sales figures and profit margins over the coming quarters, and compare these figures with those of their competitors. If there is evidence of steady improvement, this could be a sign that the company is on track for a successful recovery. On the other hand, if the company continues to struggle, investors may need to re-evaluate their investment decision.
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