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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.

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Big Lots, Inc. (BIG): Free Stock Analysis Report
 
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Ollies Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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