Big Lots (BIG) Stock | Beating Forecasts

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Big Lots Inc.  (NYSE: BIG)

 

Big Lots Inc (BIG), a discount retailer company reported 2015 second quarter results which beat analysts’ forecasts.

 

Big Lots Inc. Earnings and Outlook

Adjusted income from continuing operations of $0.40 per diluted share (non-GAAP), a 29% increase compared to income from continuing operations of $0.31 per diluted share last year. Comparable store sales increase of 2.8% representing the sixth consecutive quarter of comp store sales growth. Operating profit grew, both in dollars and in rate. BIG returned $175 million to shareholders in the forms of share repurchases and dividend payments. PR Newswire

 

Big Lots Inc. CEO’s Comments

Commenting on today’s release, David Campisi, Chief Executive Officer and President of Big Lots stated,

“I’m pleased with our second quarter results. Despite unseasonable weather conditions, Q2 comps increased 2.8% reflecting strength in our winnable and ownable categories and improved consistency in all aspects of our operations. Jennifer continues to respond positively to our strategic improvements in merchandising, marketing, and in-store execution resulting in our sixth consecutive quarter of comp sales growth. Healthy comp sales growth and consistent execution across the business enabled us to exceed earnings expectations for Q2.”  PR Newswire

 

BIG Technical Analysis

BIG gapped up on Friday in price to 46.86 up from the prior day’s close of $42.00 which is a 12% increase based on favorable earnings report. Taking a look at the daily chart we can see the last time the stock traded at this price level was on July 13 when it closed at $47.10. Taking a further look down the chart we can see the stock closed at $48.15 on May 11 which may be the next resistance level. Dating back to March 9 when the stock traded at $50.96 we can see many peaks and valleys on the chart with a general trend of lower highs with today’s spike up we seem to be breaking that trend.  The pre market highs for the stock reached $47.16 so it only gave back $0.30 at the open. For trading purposes my entry point would be $47.00 with a possible add on at pre-market highs of $47.16 looking for a run up to the $48.15 level. My stop loss would be $46.75 which is $0.11 below the gap up price giving a little room so I don’t get stopped out and then watch it run.

 

Company Profile

Big Lots, Inc., through its subsidiaries, operates as a non-traditional, discount retailer in the United States. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments; soft home category that consists of fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments; hard home category, including small appliances, table top, food preparation, stationery, greeting cards, tools, paint, and home maintenance departments; and furniture and home décor category consisting of upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. It also provides merchandise under the seasonal category that includes lawn and garden, summer, Christmas, toys, books, sporting goods, and other holiday departments; and electronics and accessories category, including electronics, jewelry, apparel, hosiery, and infant accessories departments. As of March 6, 2015, it operated 1,461 stores in 48 states. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio. Yahoo Finance

 

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