Results Good at Big Lots; Forecast Not So Good

131772836Big Lots Inc. (NYSE: BIG) reported fourth-quarter and full-year 2012 results before markets opened this morning.

The close-out retailer reported quarterly diluted earnings per share (EPS) of $2.08 on revenues of $1.7 billion. In the same period a year ago, Big Lots reported EPS of $1.83 on revenue of $1.63 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.98 and $1.75 billion in revenue.

For the full fiscal year, Big Lots posted adjusted EPS of $2.99 on revenues of $5.4 billion. The consensus estimates called for EPS of $2.90 on revenues of $5.4 billion.

For the new fiscal year, the company forecasts adjusted EPS of $3.05 to $3.25 on a sales increase of 2% to 3%. For the first quarter Big Lots expects adjusted EPS of $0.53 to $0.65 on revenue growth of 1% to 3% year-over-year. The consensus estimate for the full year calls for EPS of $3.16 on revenues of $5.56 billion. For the first quarter, the consensus estimate calls for EPS of $0.75 on revenues of $1.33 billion.

In the fourth quarter, U.S. same-store sales fell 3.5%. The company's Canadian division only broke even in the quarter, which was still better than the $11.4 million loss the division posted in the third quarter.

Big Lots, unlike competitors Family Dollar Stores Inc. (NYSE: FDO) or Dollar Tree Inc. (NASDAQ: DLTR), depends on traffic to make sales. Declining same-store sales are not a good sign, but today's results will give the stock a temporary boost. Eventually investors will notice that first quarter guidance is well below the consensus estimate.

Shares are up 3.7% in premarket trading this morning, at $35.15, in a 52-week range of $26.69 to $47.22. Thomson Reuters had a consensus analyst price target of around $34.40 before today's results were announced.

Filed under: 24/7 Wall St. Wire, Earnings, Retail, Services Tagged: BIG, DLTR, FDO
Read Full Story


DJIA 24,462.94 -201.95 -0.82%
NASDAQ 7,146.13 -91.93 -1.27%
S&P 500 2,670.14 -22.99 -0.85%
NIKKEI 225 22,141.41 -20.83 -0.09%
HANG SENG 30,418.33 0.00 0.00%
DAX 12,540.50 -26.92 -0.21%
USD (per EUR) 1.23 0.00 0.01%
USD (per CHF) 0.98 0.00 -0.03%
JPY (per USD) 107.76 -0.11 -0.10%
GBP (per USD) 1.40 0.00 0.09%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.