Stock Market Watch

Big Lots Q3 Profit Drops; Shares Tumble (BIG)

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Shares of Big Lots Inc. (NYSE: BIG), a closeout retailer, are sinking in today’s trading after the company announced that its third-quarter profit dropped due to loss in Canadian business and a slowdown in the U.S. The company’s third-quarter profit also fell short of analysts’ estimate.

Big Lots shares fell to an intra-day low of $35.65. At last check, the stock was down 7.75% to $36.65 on above average volume of 4.63 million. Big Lots shares are 19.8% this year.


For the third quarter ended October 29, the Columbus, Ohio-based company reported a profit of $4.2 million, or $0.06 per share, compared with a profit of $17.7 million or $0.23 per share reported for the same period in the previous year.

Analysts were expecting the company to report a profit of $0.09 per share.

Big Lots’ revenue for the third quarter was $1.14 billion, compared with $1.06 billion reported for the same period in the previous year. Analysts were expecting the company to report third-quarter revenue of $1.13 billion. The company’s comparable sales in the U.S. rose 1.7%.

Big Lots’ gross margin fell in the third quarter as the company suffered a $6.9 million operating loss in its new Canadian operation. The company had acquired the Canadian business in July this year.

Despite reporting a sharp drop in third-quarter profit, Big Lots raised its fourth-quarter and full-year earnings guidance. For the full year, the company now expects to report earnings of $2.85-$2.92 per share. This compares with earnings of $2.83 per share reported last year. Analysts expect the company to report earnings of $2.89 per share.

For the fourth quarter, the company expects to report earnings of $1.59-$1.66 per share on sales growth of 1%-2%. Analysts expect the company’s fourth-quarter profit to come in at $1.63 per share.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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