LONDON, UK / ACCESSWIRE / September 18, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Big Lots, Inc. (NYSE: BIG), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=BIG, following the Company's posting of its second quarter fiscal 2017 financial results on August 25, 2017. The discount retailer outperformed top- and bottom-line expectations and also provided guidance for the upcoming quarters and fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BIG. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=BIG
Earnings Reviewed
Big Lots' net sales for the thirteen weeks ended July 29, 2017, increased 1.5% to $1.22 billion compared to $1.20 billion in Q2 2016, as a result of the comparable store sales increase partially offset by a lower store count on a y-o-y basis. The Company's comparable store sales increased 1.8% for the reported quarter compared to its own guidance of a low single-digit increase. Big Lots' net sales beat analysts' estimates of $1.21 billion.
For Q2 2017, Big Lots' total expense dollars were $445 million and the expense rate of 36.4% was approximately 70 basis points compared to the year-ago period. The Company's Interest expense was $1.6 million compared to $1.5 million in Q2 2016.
Big Lots reported income of $29.1 million, or $0.67 per diluted share, for Q2 2017, representing a 29% increase over adjusted income of $23.4 million, or $0.52 per diluted share, for Q2 2016. The Company's earnings beat its own guidance of income in the range of $0.58 to $0.63 per diluted share and Wall Street's estimates of 0.62 per share.
Inventory and Cash Management
Big Lots' Inventory ended Q2 2017 at $810 million compared to $809 million for Q2 2016. The Company's inventory levels per store increased 1% on a y-o-y basis, partially offset by a lower store count year-over-year.
Big Lots ended Q2 2017 with $56 million of cash and cash equivalents and $227 million of borrowings under its credit facility compared to $58 million of cash and cash equivalents and $258 million of borrowings under its credit facility as of the end of Q2 2016. The Company's capital expenditures for the reported quarter were $31.1 million compared to $26.4 million in the prior year's same quarter, and depreciation expense was $29.4 million, a decrease of approximately $1.4 million on a y-o-y basis.
The Company's cash flow (cash provided by operating activities less cash used in investing activities) was focused on returning cash to shareholders and lowering its overall debt levels.
Total Cash Returned To Shareholders
On February 28, 2017, Big Lots' Board of Directors approved a share repurchase program providing for the repurchase of up to $150 million of common shares in the open market and/or privately negotiated transactions at the Company's discretion, subject to market conditions and other factors.
During Q2 2017, Big Lots invested $95 million to repurchase 2.0 million shares at an average price of $47.86 per share. Year-to-date through the reported quarter, the Company has invested $128 million to repurchase 2.7 million shares at an average price of $48.00 per share. Big Lots ended Q2 2017 with approximately $22 million of authorization remaining under the share repurchase program.
Store Update
During Q2 2017, Big Lots' opened 6 stores and closed 11, leaving the Company with 1,429 stores and total selling square footage of 31.5 million at the end of the reported quarter.
Outlook
For Q3 2017, Big Lots' is forecasting income of $0.01 to $0.05 per diluted share compared to adjusted income of $0.04 per diluted share (non-GAAP) for the same period last year. The Company is expecting comparable store sales increase in the low single digits
For Q4 2017, Big Lots' is projecting income to be in the range of $2.30 to $2.38 per diluted share compared to adjusted income of $2.26 per diluted share (non-GAAP) for Q4 2016. This guidance is based on comparable store sales in the range of flat to +2%.
For FY17, Big Lots raised its guidance for income to be in the range of $4.15 to $4.25 per diluted share, compared to its prior guidance of $4.05 to $4.20 per diluted share; representing a 14% to 17% increase compared to FY16 adjusted income of $3.64 per diluted share. The Company's income forecast is based on a comparable store sales increase of 1% to 1.5% and total sales up 2% to 2.5% on a y-o-y basis. Big Lots reaffirmed guidance for FY17 cash flow of $180 million to $190 million.
Stock Performance
On Friday, September 15, 2017, the stock closed the trading session at $50.02, climbing 1.34% from its previous closing price of $49.36. A total volume of 1.48 million shares have exchanged hands, which was higher than the 3-month average volume of 948.86 thousand shares. Big Lots' stock price advanced 4.45% in the last three months, 0.02% in the past six months, and 4.43% in the previous twelve months. The stock is trading at a PE ratio of 13.01 and has a dividend yield of 2.00%. At Friday's closing price, the stock's net capitalization stands at $2.10 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
