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Big Lots (BIG) to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research

Big Lots, Inc. BIG is slated to report first-quarter fiscal 2020 results on May 29. This OH-based company has a trailing four-quarter positive earnings surprise of 18.7%, on average.

The Zacks Consensus Estimate for the quarter under review is pegged at 36 cents, indicating a decline from 92 cents earned in the year-ago quarter. However, the consensus estimate has increased by 6 cents over the past 30 days. Moreover, the consensus mark for revenues is pinned at $1.32 billion, suggesting a rise of 2.2% from the year-ago quarter.

Big Lots, Inc. Price and EPS Surprise


Big Lots, Inc. Price and EPS Surprise

Big Lots, Inc. price-eps-surprise | Big Lots, Inc. Quote

Key Factors to Consider

Last month, Big Lots reported positive quarter-to-date comparable sales (comps) for first-quarter fiscal 2020 despite the cancellation of its "Friends and Family" event and closure of all stores on Easter day. Robust sales for essential items like food and consumables aided comps. Being a provider of essential goods, Big Lots’ stores are open to serve the community amid the coronavirus outbreak. Impressively, it has been making operational enhancements and has added the curbside pickup service for online orders. In addition, Big Lots’ e-commerce business bodes well, buoyed by the success of the “Buy Online Pick-up In Store” (BOPIS) functionality across many stores. These initiatives have most likely driven the company’s top line in the fiscal first quarter.

However, Big Lots has withdrawn its outlook for the first quarter and fiscal 2020. Also, management made unplanned expenditure on temporary store and distribution center wage increases as well as store cleaning and other items in March. In addition, Big Lots has been seeing dismal margins for a while now, mainly due to higher costs.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Big Lots this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Big Lots carries a Zacks Rank #2 and an Earnings ESP of +19.01%.

Other Stocks With Favorable Combinations

Here are some more companies you may want to consider, as our model shows that these too have the right combination of elements to beat on earnings in the upcoming releases.

Guess? GES has an Earnings ESP of +12.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General DG has an Earnings ESP of +6.69% and a Zacks Rank #2.

Williams Sonoma WSM has an Earnings ESP of +264.32% and a Zacks Rank #3.
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