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Big Lots (BIG) to Report Q2 Earnings: What's in the Cards?

·5 min read

Big Lots, Inc. BIG is likely to report top- and bottom-line decreases from the last fiscal year’s reading when it reports second-quarter fiscal 2022 results on Aug 30, before market open. The Zacks Consensus Estimate for the fiscal second quarter is currently pegged at a loss of $2.38 per share, indicating a plunge from $1.09 earned in the last fiscal year’s quarter. The consensus mark has decreased 5.3% in the past seven days.

The consensus mark for quarterly revenues is pegged at $1,362 million, indicating a dip of 6.8% from the last fiscal year’s quarterly reported number.

This Columbus, OH-based player delivered an earnings surprise of 38.7%, on average, in the trailing four quarters.

Key Factors to Note

Big Lots has been witnessing increased freight costs for a while now. These along with supply-chain disruptions are persistently hurting BIG’s results. Also, outbound transportation expenses are adding up to deleveraged operating costs. All these factors along with inflationary pressures and outbound transportation cost, representing increased fuel and trucking costs, might have hurt BIG’s performance in the fiscal second quarter.

On its last earnings call, management expected the operating backdrop to remain tough. For the fiscal second quarter, management estimated SG&A dollars to be slightly up from the same-period level in fiscal 2021.

On the flip side, Big Lots’ transformation initiative and e-commerce business appear encouraging. The transformation plan focuses on driving the top line, cost containment and enhancement of systems and infrastructure. BIG’s Broyhill and Real Living brands are performing well. Management had earlier projected three-year comparable sales to accelerate to positive mid-to-high-single digits in the fiscal second quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Big Lots this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Big Lots currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -3.16%.

Stocks With Favorable Combination

Here are a few stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Casey's General Stores CASY currently has an Earnings ESP of +24.88% and a Zacks Rank #3. CASY is expected to register a bottom-line increase from the year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago fiscal quarter’s reading. You can see the complete list of today’s Zacks #1 Rank stocks here.

Casey's General’s top line is anticipated to have risen from the year-ago fiscal quarter’s finals. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago fiscal quarter. CASY's has a trailing four-quarter earnings surprise of 5.8%, on average. 

Dave & Buster's Entertainment PLAY currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. PLAY is likely to register a decline in the bottom line from the prior-year fiscal quarter’s reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago fiscal quarter’s number.

Dave & Buster's Entertainment’s top line is expected to have increased from the year-earlier fiscal quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year fiscal quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.

Campbell Soup Company CPB currently has an Earnings ESP of +0.60% and is Zacks #3 Ranked. CPB is expected to register an increase in the bottom line from the year-earlier fiscal quarter’s actuals when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago fiscal quarter’s reading.

Campbell Soup’s top line is anticipated to have increased from the year-ago fiscal quarter’s finals. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago fiscal quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Big Lots, Inc. (BIG) : Free Stock Analysis Report
 
Campbell Soup Company (CPB) : Free Stock Analysis Report
 
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
 
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
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