Big Lots Inc. Earnings Cheat Sheet: Profit Drops, but Beats Estimates

S&P 500 (NYSE:SPY) component Big Lots Inc. (NYSE:BIG) posted lower net income in the third quarter compared with a year-earlier period. Big Lots operates as a broadline closeout retailer through its subsidiaries in the United States. It sells a number of products, including food, home decor, and furniture.

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Big Lots Earnings Cheat Sheet for the Third Quarter

Results: Net income for the discount store fell to $4.2 million (6 cents per share) vs. $17.7 million (23 cents per share) a year earlier. This is a decline of 76.3% from the year earlier quarter.

Revenue: Rose 7.8% to $1.14 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BIG reported adjusted net income of 17 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. Analysts were expecting revenue of $1.13 billion.

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the second quarter, by 2 cents in the first quarter, and by 8 cents in the fourth quarter of the last fiscal year.

The company has now seen net income fall in each of the last three quarters. In the second quarter, net income fell 8.2% from the year earlier, while the figure fell 6.1% in the first quarter.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 2.2% to $1.17 billion from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.62 per share from $1.61. The average estimate for the fiscal year has risen to $2.89 per share from $2.87 in the past month.

Competitors to Watch: Family Dollar Stores, Inc. (NYSE:FDO), Dollar General Corp. (NYSE:DG), 99 Cents Only Stores (NYSE:NDN), Dollar Tree, Inc. (NASDAQ:DLTR), Duckwall-ALCO Stores, Inc (NASDAQ:DUCK), Target Corporation (NYSE:TGT), Fred’s, Inc. (NASDAQ:FRED), Wal-Mart Stores, Inc. (NYSE:WMT), Costco Wholesale Corp. (NASDAQ:COST), and Cost Plus, Inc. (NASDAQ:CPWM).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)