Earnings Reports

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The US consumer has gone on-line, we know that from Amazon (AMZN) and Walmart's (WMT) online segment but is there more to it? On Friday discount and closeout retailer Big Lots, Inc. (BIG) reported better than expected Q4 earnings.

Big Lots Sign

There is a huge part of the US economy that is hurting, we know that from the Trump election among other statistics. We know convenience and entitlement are also huge factors, it is hard to beat $AMZN deliveries at your day at a cheaper price.

On Friday discount and closeout retailer Big Lots, Inc. (BIG) reported Q4 earnings. The report on the back of traditional and online reports tell a lot of why Target and J..Penney among others are in a retail death spiral. We want things cheap and we want them now and if we don't have money lets get closeouts and discounts.

Earnings:

Net income $90.1 million or $1.99 per share, compared to $94.53 million or $1.91 per share last year. Adjusted income from continuing operations totaled $102.0 million, or $2.26 per share, compared to last year's $99.7 million, or $2.01 per share.

Net sales fell 0.3% to $1.58 billion, comparable store sales increase of 0.3% was offset by a lower store count year-over-year. Analysts expected earnings of $2.22 per share on revenues of $1.59 billion.

Reaction: Big Lots, NYSE: BIG Pre-market: 54.82 +4.92%

We now live in a world of central bank easing and printing for the last 8 years, a situation where a populist business man is running the US and a Federal Reserve in a tightening cycle. How has this helped the little man?

The retail picture helps us here try to work it out.

Guidance

Big Lots expects first-quarter income in the range of $0.95 to $1.05 per share, a 16% to 28% increase from last year's adjusted income of $0.82 per share. This guidance assumes comparable store sales in the range of flat to up 2%.

On average, 10 analysts polled by Thomson Reuters expect earnings of $0.90 per share for the quarter. For fiscal 2017, the company expects income to be $3.95 to $4.10 per share, a 9% to 13% increase from last year's adjusted income of $3.64 per share. Analysts expect earnings of $3.99 per share for the year.

The full-year guidance is based on a comparable store sales increase in the 1% to 2% range, and total sales flat to up slightly. This is compared to comparable store sales increase of 0.9% and net sales of $5.20 billion in fiscal 2016. The guided targets would result in cash flow of approximately $180 to $190 million.

Share Repurchase

$BIG said that on February 28, the Board of Directors approved a share repurchase program of up to $150 million of common shares. Dividend Increase $BIG announced that its Board increased the quarterly dividend payment rate approximately 19% by declaring a first-quarter quarterly cash dividend of $0.25 per share. This dividend is payable on March 31, to shareholders of record as of the close of business on March 17.

Source: Big lots, TradersCommunity

From The TradersCommunity News Desk

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