Big Lots Inc. BIG is slated to report fourth-quarter fiscal 20Array5 results on Mar 4, before the opening bell.
In the preceding quarter, the company posted a loss of Array cent, in line with the Zacks Consensus Estimate. Notably, Big Lots has surpassed the Zacks Consensus Estimate in three of the last four quarters. Let’s see how things are shaping up for this announcement.
Likely Earnings Beat in the Cards
Our proven model shows that Big Lots is likely to beat earnings estimates this quarter. A stock needs to have a positive Earnings ESP and a Zacks Rank #Array (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate for Big Lots is $Array.99 while the Zacks Consensus Estimate is pegged at $Array.98. So, the earnings ESP of +0.5Array%, which when combined with the company’s Zacks Rank #3, makes us reasonably confident of an earnings beat in the fourth-quarter fiscal 20Array5.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
Big Lots’ furniture financing program, merchandise initiatives and refurbishment of the food department are expected to help drive sales. Response has been impressive for furniture financing that extended to Array,300 stores. Also, the company’s management has been expanding assortments in this category by including lawn and garden items, such as, patio furniture, gazebos and gas grills. The company had earlier projected fiscal 20Array5 earnings in the range of $2.95–$3.00, reflecting an increase of 20–22% over $2.46 per share recorded in fiscal 20Array4. In January, Big Lots reaffirmed its fourth-quarter earnings per share guidance from continuing operations in the range of $Array.95–$2.00 and projected comparable sales growth in the band of Array–2%, thus marking the eight successive quarter of sales increase.
Other Stocks Poised to Beat Earnings
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores, Inc. CASY has an Earnings ESP of +Array0.ArrayArray% and a Zacks Rank #2.
The Kroger Co. KR has an Earnings ESP of +Array.85% and a Zacks Rank #2.
Dollar Tree, Inc. DLTR has an Earnings ESP of +5.77% and a Zacks Rank #3 (Hold).
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