Big Lots Inc.
), one of the leading retailers specializing in closeout
merchandise and toys, is slated to post fourth quarter and fiscal
2013 results on Mar 7, 2014. In the last quarter, it delivered a
negative earnings surprise of -100%. Let's see how things are
shaping up for this announcement.
Factors this Past Quarter
Big Lots posted dismal third-quarter fiscal 2013 results in which
the company's losses widened from the Zacks Consensus Estimate
and also from the prior-year quarter loss. Although the top line
showed a marginal year-on-year growth, it fell short of the Zacks
Consequently, Big Lots trimmed its earnings forecast. Waning
domestic comparable-store sales, sluggish sales of discretionary
items in a low income consumer environment, and soft sales of
higher margin seasonal products remain the company's key
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Our proven model does not conclusively show that Big Lots is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see below.
Negative Zacks ESP
: Big Lots currently has an Earnings ESP of -10.56%. This is
because the Most Accurate estimate stands at $1.27, while the
Zacks Consensus Estimate is pegged at $1.42.
: Big Lots' Zacks Rank #3 (Hold), when combined with negative
ESP, makes surprise prediction difficult. We caution against
stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going
into the earnings announcement, especially when the company is
seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these have the right combination of elements to post
an earnings beat this quarter:
American Airlines Group Inc.
), Earnings ESP of +13.56% and a Zacks Rank #1 (Strong Buy).
), Earnings ESP of +6.25% and a Zacks Rank #1 (Strong Buy).
American Financial Group Inc.
), Earnings ESP of +2.00% and a Zacks Rank #1 (Strong Buy).