Upcoming AWS Coverage on Fred's, Inc. Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 9, 2016 / Active Wall St. announces its post-earnings coverage on Big Lots, Inc. (NYSE: BIG). The Company released its financial results for the third quarter fiscal 2016 (Q3 FY16) on December 02, 2016. The Columbus, Ohio-based Company's adjusted EPS from continuing operations improved year-over-year, outperforming market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Big Lots' competitors within the Discount, Variety Stores space, Fred's, Inc. (NASDAQ: FRED), released its third quarter results and November sales on Thursday, December 8, 2016. AWS will be initiating a research report on Fred's in the coming days.

Today, AWS is promoting its earnings coverage on BIG; touching on FRED. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=BIG

http://www.activewallst.com/registration-3/?symbol=FRED

Earnings Reviewed

Big Lots reported net sales of $1.11 billion in Q3 FY16, which came in marginally below $1.12 billion recorded in Q3 FY15, primarily due to lower year-over-year store count. Net sales numbers for Q3 FY16 lagged behind market consensus estimates of $1.12 billion. In Q3 FY16, comparable store sales were flat and were in-line with the company's previously provided guidance of flat to plus 2% comparable store sales growth.

For Q3 FY16, the discount retailer' net income from continuing operations came in at $1.36 million, or $0.03 per diluted share, compared to net loss from continuing operations of $1.70 million, or $0.03 loss per diluted share, in Q3 FY15. The company's adjusted net income from continuing operations rose to $1.88 million, or $0.04 per diluted share, adjusted net loss from continuing operations $155 thousand, or $0.00 per diluted share, in the year ago quarter. Adjusted EPS from continuing operations for Q3 FY16 topped analysts' consensus estimates of adjusted net loss of $0.02 per diluted share.

Operating Metrics

For Q3 FY16, the Company's gross profit rose marginally to $441.99 million from $440.01 million in the year ago period. Big Lots' gross margin as a percentage of net sales increased by approximately 60 basis points to 40.0% in Q3 FY16 from 39.4% in Q3 FY15. Big Lots' selling, general, and administrative (SG&A) expenses for Q3 FY16 fell to $409.75 million from $411.99 million in Q3 FY15. During the reported quarter, the company reported operating profit of $1.95 million compared to operating loss of $2.16 million in the last year's comparable quarter.

Cash Flow and Balance Sheet

In the nine months ended October 29, 2016, Big Lots' net cash provided by operating activities was $43.54 million compared to $52.32 million in the first three quarters of FY15. As on October 29, 2016, the company had cash and cash equivalents balance of $59.74 million compared to a balance of $61.54 million as on October 31, 2015. The company had long-term obligations under bank credit facility of $362.90 million as on October 29, 2016, versus $334.90 million as on October 31, 2015. Furthermore, inventory as of October 29, 2016, stood at $1.04 billion compared to $1.05 billion at the end at the end of Q3 FY15.

Dividend and Share Repurchase

In a separate press release, on November 30, 2016, Big Lots' Board of Directors declared a quarterly cash dividend of $0.21 per common share. The dividend is payable on December 30, 2016, to shareholders of record as of the close of business on December 16, 2016.

In FY16, the company is expected to return $288 million to shareholders through share repurchase investments of 250 million and quarterly dividend payments of $38 million.

Earnings Outlook

In its guidance for Q4 FY16, Big Lots affirmed its adjusted income from continuing operations guidance range of $2.18 to $2.23 per diluted share. It also reiterated comparable store sales growth range for Q4 FY16 of flat to positive 2%.

For full year FY16, Big Lots raised its adjusted income from continuing operations outlook to be in the range of $3.55 to $3.60 per diluted share. The company affirmed comparable store sale growth in the range of 1% to 2%. Additionally, it raised FY16 cash flow outlook to $195 million.

Stock Performance

On Thursday, December 08, 2016, Big Lots' stock climbed 1.85%, ending the trading session at $55.50. A total volume of 1.14 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.00 million shares. In the last month and previous three months, shares of the company have advanced 24.08% and 14.93%, respectively. Moreover, the stock skyrocketed 45.89% since the start of the year. The company's shares are trading at a PE ratio of 17.44 and have a dividend yield of 1.51%.

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SOURCE: Active Wall Street