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Category: Stock Market and Big Lots
Date: 31 August 2019 Stock Price: $22.75 We take a look at the 2nd quarter earnings report of their 2019 fiscal year of Big Lots! the retailer operating over 1400 retail stores in 47 states.
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About Big Lots!
Headquartered in Columbus, Ohio, Big Lots, Inc. is a community retailer operating more than 1,400 Big Lots stores in 47 states, dedicated to friendly service, trustworthy value, and affordable solutions in every season and category – furniture, food, décor, and more. Our stock is traded on the New York Stock Exchange under the symbol BIG.
We exist to serve everyone like family, providing a better shopping experience for our customers, valuing and developing our associates, and creating growth for our shareholders. Big Lots supports the communities it serves through the Big Lots Foundation, a charitable organization focused on four areas of need: hunger, housing, healthcare, and education
We exist to serve everyone like family, providing a better shopping experience for our customers, valuing and developing our associates, and creating growth for our shareholders. Big Lots supports the communities it serves through the Big Lots Foundation, a charitable organization focused on four areas of need: hunger, housing, healthcare, and education
Financial overview of Big Lots' latest earnings report
The numbers we are interested in (for the quarter)
- Net sales $1.252 billion ($1.222 billion)
- Operating profit: $13.181 million ($34.318 million for the same quarter of the previous year)
- Net income: $6.178 million ($24.164 million for the same quarter of the previous year)
- Diluted earnings per share: $0.16 ($0.59)
- PE ratio: 35.54 (assuming the earnings in this quarter repeats for the following 3 quarters)
- Diluted number of shares outstanding: 39.077 million (41.281 million for the same quarter of the previous year)
- Cash dividend declared per common share: $0.30 (unchanged from $0.30 for the same quarter of the previous year)
- Dividend yield: 5.3% (assuming the dividend for each quarter of the fiscal year is the same as this quarter)
- Cash and cash equivalents: $53,705 ($58,457 million for the same quarter of the previous year)
- Cash and cash equivalents per share: $1.37
- Cash and cash equivalents on the group's balance sheet makes up 6.04% of the group's market capital
- Cash and cash equivalents per share: $1.37
- Inventories: $874.058 million ($854.192 million for the same quarter of the previous year)
- Inventories makes up 27,4% of the group's total assets
- Inventories makes up 27,4% of the group's total assets
- Net cash provided by operating activities (estimated for quarter): $79.1425 million
- Net cash provided by operating activities per share: $2.025
- Net cash provided by operating activities per share: $2.025
- Shareholders' equity: $644.543 million
- Shareholders' equity per share: $16.49
- Shareholders' equity per share: $16.49
Big Lots management commentary on the results and earnings guidance
COLUMBUS, Ohio, Aug. 30, 2019 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today reported income of $6.2 million, or $0.16per diluted share, for the second quarter of fiscal 2019 ended August 3, 2019. This result includes after tax charges totaling $14.5 million, or $0.37 per diluted share, associated with the implementation of our strategic business transformation. Excluding these charges, adjusted income totaled $20.6 million, or $0.53 per diluted share (see non-GAAP table included later in this release), which compares to our guidance of adjusted income of $0.35 to $0.45 per diluted share (non-GAAP). Income for the second quarter of fiscal 2018 was $24.2 million, or $0.59 per diluted share.
Comparable store sales increased 1.2% for the second quarter of fiscal 2019, compared to our guidance of an increase in the low single digits. Net sales for the second quarter of fiscal 2019 totaled $1,252 million, a 2.5% increase compared to $1,222 million for the same period last year, with the increase resulting from positive comparable store sales and sales growth in high volume new stores, or non-comp stores, partially offset by a lower store count year-over-year.
Commenting on today's announcement, Bruce Thorn, President and CEO of Big Lots stated, "We are pleased with our performance for the second quarter, which was in line with our sales guidance and ahead on earnings. Going forward, despite the current tariff headwinds, we are confident we will be able to navigate through this environment to deliver a good outcome for 2019. More significantly, I am highly encouraged by the progress we have made over the last 90 days on our strategic transformation. Our existing initiatives are working, and we have important new strategies in progress to drive profitable long-term growth and deliver value to our shareholders."
FISCAL Q3 2019 GUIDANCE (non-GAAP)
FISCAL 2019 GUIDANCE (non-GAAP)
Comparable store sales increased 1.2% for the second quarter of fiscal 2019, compared to our guidance of an increase in the low single digits. Net sales for the second quarter of fiscal 2019 totaled $1,252 million, a 2.5% increase compared to $1,222 million for the same period last year, with the increase resulting from positive comparable store sales and sales growth in high volume new stores, or non-comp stores, partially offset by a lower store count year-over-year.
Commenting on today's announcement, Bruce Thorn, President and CEO of Big Lots stated, "We are pleased with our performance for the second quarter, which was in line with our sales guidance and ahead on earnings. Going forward, despite the current tariff headwinds, we are confident we will be able to navigate through this environment to deliver a good outcome for 2019. More significantly, I am highly encouraged by the progress we have made over the last 90 days on our strategic transformation. Our existing initiatives are working, and we have important new strategies in progress to drive profitable long-term growth and deliver value to our shareholders."
FISCAL Q3 2019 GUIDANCE (non-GAAP)
- Provides initial Q3 guidance for adjusted loss of $0.15 to $0.25 per share (non-GAAP), compared to a loss of $0.16per share for the same period last year
- Provides initial Q3 guidance for comparable store sales of approximately flat
FISCAL 2019 GUIDANCE (non-GAAP)
- Maintains guidance for fiscal 2019 adjusted income in the range of $3.70 to $3.85 per diluted share (non-GAAP)
- Updates guidance for fiscal 2019 comparable store sales of flat to slightly positive
Big Lots (NYSE: BIG) stock price history
The image below, obtained from Google, shows the stock price history of Big lots and as the image shows its been a horror show for Big Lots investors. With the stock price declining from around $47 in August 2015 to the current $22.75 a share. There has been a few periods of strong stock price growth but the overall underlying trends has been overwhelmingly negative.
Big Lots! (NYSE: BIG) latest stock valuation
Based on the group's latest financial results we have a target price on Big Lots of $31.20 a share. While the overwhelming trend in the group's stock price has been negative, we do believe it has provided long term fundamental investors with a good entry point into the stock.