Preview: Big Lots's Earnings

Big Lots BIG announces its next round of earnings this Friday, May 28. Here is Benzinga's everything-that-matters guide for this Friday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Big Lots reporting earnings of $1.69 per share on sales of $1.53 billion. In the same quarter last year, Big Lots posted EPS of $1.26 on sales of $1.44 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 34.13% increase for the company. Revenue would be up 6.32% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 2.50 0.66 2.70 0.32
EPS Actual 2.59 0.76 2.75 1.26
Revenue Estimate 1.74 B 1.35 B 1.61 B 1.31 B
Revenue Actual 1.74 B 1.38 B 1.64 B 1.44 B

Stock Performance

Shares of Big Lots were trading at $65.67 as of May 26. Over the last 52-week period, shares are up 68.05%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Big Lots is scheduled to hold the call at 08:00:00 ET and can be accessed here.

Posted In: BZI-EPEarnings