Analysts are expecting the discount retailer to post a year over year rise in earnings but revenue that is flat with the same period last year.
The company has been forecast by analysts surveyed by Thomson Reuters to report earnings of 34 cents per share on revenue of $1.2 billion for the second quarter.
Last year, Big Lots said adjusted earnings from continuing operations came in at 31 cents per share on revenue of $1.2 billion for the 2014 second quarter.
Big Lots is a Columbus, OH-based closeout chain that sells a variety of products including housewares, grocery items, furniture and apparel.
Shares of Big Lots closed higher by 2.46% to $42 on Thursday afternoon.
Separately, TheStreet Ratings team rates BIG LOTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BIG LOTS INC (BIG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BIG LOTS INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, BIG LOTS INC increased its bottom line by earning $2.51 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($2.87 versus $2.51).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multiline Retail industry. The net income increased by 862.1% when compared to the same quarter one year prior, rising from $3.35 million to $32.21 million.
- 39.37% is the gross profit margin for BIG LOTS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.51% trails the industry average.
- BIG's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.11 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full analysis from the report here: BIG Ratings Report