Big Lots (BIG, $24.67) posts narrower-than-expected loss
Big Lots reported a fiscal-third-quarter loss narrower than anticipated, as the company continued to emphasize on cost-cutting and restructuring.
For the three months ended November 2, the retail company incurred an adjusted loss of -18 cents a share, compared to the -20 cents loss expected by analysts polled by FactSet. In the year-ago quarter, the loss was -12 cents a share.
The results include an after-tax gain of $136.6 million, or $3.49 a share, from the sale of the company's distribution center in Rancho Cucamonga, Calif., as well as after-tax expense of $2.6 million, or 7 cents a share, associated with the company's strategic business revamp.
Big Lots’ sales for the quarter increased +1.6% to $1.17 billion, in line with the $1.2 billion expected by analysts.
Same-store sales decreased -0.1%, compared to the company’s guidance of flattish growth.
For the fourth-quarter, Big Lots has projected earnings of $2.40 to $2.55 a share, and expects a slight increase in comparable-store sales. Analysts polled by FactSet are expecting $2.55 a share in earnings.
CEO Bruce Thorn said that the company expects to return to EBIT and EPS growth in 2020, including substantial boost in normalized free cash flow. This is expected after a year of restructuring in 2019.
BIG in -11.78% downward trend, sliding for three consecutive days on April 15, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BIG declined for three days, in of 356 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 19, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BIG as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Aroon Indicator for BIG entered a downward trend on April 15, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BIG's RSI Indicator exited the oversold zone, of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 68 cases where BIG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BIG just turned positive on April 18, 2024. Looking at past instances where BIG's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BIG advanced for three days, in of 277 cases, the price rose further within the following month. The odds of a continued upward trend are .
BIG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.378) is normal, around the industry mean (10.198). BIG's P/E Ratio (0.000) is considerably lower than the industry average of (23.561). BIG's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (2.869). BIG's Dividend Yield (0.082) is considerably higher than the industry average of (0.024). P/S Ratio (0.022) is also within normal values, averaging (1.202).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BIG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BIG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 50, placing this stock worse than average.
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General Information
an operator of broad line closeout retail stores
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