Big Lots (BIG) to Report Q2 Earnings: Is a Beat in Store?

Big Lots, Inc. BIG is slated to report second-quarter fiscal 2020 results on Aug 28. The Zacks Consensus Estimate for the quarter under review is pegged at $2.71, which mirrors significant growth from 53 cents earned in the same quarter a year earlier. Also, the estimate increased 13.9% over the past 30 days. The consensus mark for quarterly revenues is pinned at $1.62 billion, up more than 29% from the year-ago quarter’s tally.

This Ohio-based company has delivered an earnings surprise of 62.2% in the past four quarters, on average.

Key Factors to Consider

A couple of months earlier, Big Lots issued updates on second-quarter fiscal 2020 stating that robust demand continued since mid-April and drove quarter-to-date comparable sales through fiscal June ahead of management’s expectations. Thus, it projected comparable sales to rise by a mid-to-high-twenties percentage. Further, management envisioned adjusted earnings per share between $2.50 and $2.75 for fiscal second quarter. This outlook excludes a nearly $11-per-share gain on sale of its four distribution centers with respect to the sale/leaseback transactions.

Management had notified that the guidance reflects an anticipated gross-margin rate higher than the prior year and continued expense discipline, despite including additional costs associated with COVID-19. Furthermore, Big Lots’ assortment is resonating well across all its merchandise categories along with the strength in its Big Rewards program. Also, the company looks well poised on solid gains from its transformation efforts. All the aforementioned factors have most likely driven the company’s performance in the to-be-reported quarter.

What the Zacks Model Unveils

Big Lots, Inc. Price and EPS Surprise

Big Lots, Inc. Price and EPS Surprise

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

Big Lots carries a Zacks Rank #1 and an Earnings ESP of +10.57%.

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.

Ollie’s Bargain Outlet OLLI currently has an Earnings ESP of +8.67% and a Zacks Rank #1.

DICK’S Sporting Goods DKS currently has an Earnings ESP of +30.93% and a Zacks Rank #2.

Dollar General DG presently has an Earnings ESP of +9.64% and a Zacks Rank #2.

The Hottest Tech Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

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
Dollar General Corporation (DG): Free Stock Analysis Report
DICKS Sporting Goods, Inc. (DKS): Free Stock Analysis Report
Ollies Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More