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-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However, Big Lots has withdrawn its outlook for the first quarter and fiscal 2020.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.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Big Lots, Inc. (BIG) : Free Stock Analysis Report
Guess, Inc. (GES) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research