Big Lots Reports Unexpected EPS Growth Despite Revenue Miss
December 19, 2023
☀️Trending News
Big Lots ($NYSE:BIG), Inc., a discount retailer headquartered in Ohio, has recently announced their quarterly earnings. Despite the decline in sales, Big Lots’ management has been able to reduce expenses in order to boost their EPS. They have also successfully launched several initiatives, such as online ordering and buy online, pick up in store services, which allowed them to remain competitive in a highly competitive retail environment. Furthermore, the company has also benefited from higher gross margins due to their shift towards selling more exclusive and higher margin products.
This shift has allowed them to boost profits despite lower sales. The company’s management team will be hoping that their efforts to reduce costs and focus on higher margin products can continue to drive future earnings growth for the company.
Earnings
Big Lots, a discount retail store, reported surprisingly strong earnings per share growth in its fiscal year 2024 Q2 report ending July 31, 2021. This represented an 8.3% increase in total revenue from the previous year, however the net income decreased by 144.8%. Despite this, the company has still found success in maintaining their earnings per share growth. This could be attributed to their cost-cutting measures and efficient management strategies which have enabled the company to remain profitable in spite of the current economic challenges.
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 |
| 4.83k | -463.63 | -13.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Big Lots. More…
| Operations | Investing | Financing |
| -264.38 | 310.23 | -61.4 |
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 |
| 3.63k | 3.31k | 10.48 |
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 |
| -7.3% | 3.1% | -7.7% |
| FCF Margin | ROE | ROA |
| -6.1% | -75.9% | -6.4% |
Stock Price
Big Lots reported unexpected earnings per share growth on Thursday, despite missing its revenue estimates. The company’s stock opened at $5.3 and closed at $5.3, representing a 9.8% increase from the previous day’s closing price of $4.8. This unexpected growth further suggests that Big Lots is in a strong financial position despite the adverse economic environment.
Investors responded favorably to the news as evidenced by the stock’s rise. It’s possible that investors are optimistic about the future of Big Lots and its ability to sustain its surprising growth in the midst of a down market. Live Quote…
Analysis
GoodWhale conducted an analysis of BIG LOTS‘s wellbeing using our Star Chart. According to the chart, BIG LOTS has an intermediate health score of 6/10 with regards to its cashflows and debt, indicating a potential ability to sustain future operations in times of crisis. The Star Chart further showed that BIG LOTS is strong in asset, dividend, and medium in profitability, while being weak in growth. This led us to classify BIG LOTS as a ‘cow’, which are companies that have a track record of paying out consistent and sustainable dividends. This information is useful for potential investors interested in BIG LOTS. Investors looking for a steady dividend should consider BIG LOTS as an option, while those looking for rapid growth may want to look elsewhere. More…
Peers
Big Lots Inc is an American retail company that competes with other discount retailers such as B&M European Value Retail SA, Dollar General Corp, and Target Corp. Big Lots offers a variety of merchandise including furniture, seasonal items, grocery, and home decor. The company operates over 1,400 stores in 47 states.
– B&M European Value Retail SA ($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 has seen mixed results in its most recent quarter. The company reported a Non-GAAP EPS of -$4.38, beating analysts’ estimates by $0.28. Revenue was reported at $1.02B, missing estimates by $10M.
Despite the shortfall in revenue, the stock price moved up the same day. Investors should keep an eye on BIG LOTS to see if they can continue to improve their earnings and revenue going forward.
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