Big Lots Down after Lowering Outlook

Shares of retailer Big Lots, Inc. (NYSE:BIG) are down over 2% in morning trade after the company lowered its first quarter profit outlook. The company said that for its first quarter it expected adjusted earnings from continuing operations in a range of 75 to 81 cents per share. This is below the 82 cents per share forecasted by Wall Street analysts.

The company foresees fiscal 2012 adjusted earnings from continuing operations between $3.40 and $3.50 per share. This is in line with analyst consensus forecasts of $3.46 per share. Revenue at U.S. stores open at least 15 months is expected to rise 2 percent to 3 percent.

The company’s fourth quarter revenues and profits exceeded analyst forecasts. The company reported fourth quarter fiscal 2011 net income totaled $114.7 million, or $1.75 per diluted share, compared to $110.1 million, or $1.46 per diluted share, for the fourth quarter of fiscal 2010.

Net sales for U.S. operations for the fourth quarter of fiscal 2011 increased 7.5% to $1,632.9 million, compared to $1,518.9 million for the same period in fiscal 2010. Comparable store sales for U.S. stores open at least two years at the beginning of the fiscal year increased 3.4% for the quarter.

For fiscal 2011, ended January 28, 2012, net income totaled $207.1 million, or $2.98 per diluted share. For fiscal 2011, income from continuing operations totaled $207.2 million, or $2.99 per diluted share, compared to $222.5 million, or $2.83 per diluted share, for fiscal 2010.

Commenting on fiscal 2011 results, Steve Fishman, Chairman, Chief Executive Officer and President stated, “We are very pleased to deliver our fifth consecutive year of record operating profit in the U.S. and record EPS for the overall Company. We were aggressive this year in certain key merchandise initiatives and our strategies accelerated sales trends as the year progressed. We successfully opened 92 new stores in the U.S. and expanded our footprint into Canada with the acquisition of Liquidation World. We operated as good stewards of our cash and shareholders’ capital as we invested in long-term growth opportunities, both in the U.S. and Canada, while returning $359 million of cash back to shareholders through our share repurchase efforts.”

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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.