Big Lots Up Big Time After Q2 Beat, Raised Guidance
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Big Lots, Inc. (NYSE: BIG) shares were trading sharply higher by $6.50 (15 percent) at $48.50 in Friday's session. The catalyst for the monster rally is a Q2 beat for EPS ($0.40 vs. $0.34 estimates) and for sales ($1.21 billion vs. $1.20 billion). In addition, the company raised FY EPS from $2.87 estimates to the $2.90-$3.00 range.
The rally, which started in the pre-market session has spilled over into the regular session. Before the open, it had risen from Thursday's close ($42) to the $46.50 area. Following an opening print at $46.86, it declined to $46.08 before resuming its rally.
So far, it has reached $48.61 and is not trading far from that level. That marks the highest level for the issue since it peaked on April 8 at $48.82. It's also nearly $10 higher than its low from Monday morning ($39.77).
Today's price action is taking place on much higher than average volume. With over three hours remaining, 4.6 million shares have changed hands compared to 20-day average of 1.02 million shares.
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