Big Lots Performs BIG

Source: http://www.zacks.com/stock/news/14406/Big+Lots+Performs+BIG
Posted on Tuesday, August 26th, 2008 | In Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

Big Lots, Inc. (BIG), a large-scale U.S. closeout retailer, beats estimates in its fiscal second quarter 2009 (ended July), bringing in 32 cents per share on $26 million in profit and over $1 billion in revenues. The Zacks consensus expected 27 cents per share.

This marks at least the 5th-straight positive quarterly earnings surprise for the company, which may well have benefited from U.S. stimulus checks in its quarterly results. A Reuters report this morning brought up the fact that Big Lots has benefited from taking excess merchandise from manufacturers in the current weak retail climate.

The Zacks Rank for BIG has shot up to a #1 (Strong Buy), largely on the strength of upward estimate revisions in the past month by 3 analysts for the July quarter and 3 for fiscal year ‘09 (ending January). Even still, Big Lots outperformed by 5 cents per share in the quarter. For October, the Zacks consensus estimate is 16 cents per share; it is currently $1.90 for the fiscal year.

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