Big Lots Earnings: What To Look For From BIG

Discount retail company Big Lots (NYSE:BIG) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.

Big Lots missed analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.01 billion, down 10.2% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.

Is Big Lots a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Big Lots’s revenue to decline 8.3% year on year to $1.04 billion, improving from the 15.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$3.46 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Big Lots has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Big Lots’s peers in the discount retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ollie's delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 3%, and Burlington reported revenues up 13.4%, topping estimates by 2%. Ollie's traded down 4.9% following the results while Burlington was also down 1.8%.

Read our full analysis of Ollie’s results here and Burlington’s results here.

There has been positive sentiment among investors in the discount retailer segment, with share prices up 3.3% on average over the last month. Big Lots is down 51.4% during the same time and is heading into earnings with an average analyst price target of $2.6 (compared to the current share price of $0.53).

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