Big Lots Profit and Forecast Up

Elena
29 Aug, 2007
New York City

The retailer reported net income rise to $23.4 million, or 22 cents per share, up from $4.3 million, or 4 cents per share a year ago. Income from continuing operations soared to $22.1 million, or 21 cents per share, from $4.7 million, or 4 cents per share. Big Lots lifted its full-year forecast for profit of continuing operations, due to the upbeat Q2 financial results and current business trends.

[R]8:00AM Big Lots posted higher Q2 profit and lifted full-year forecast.[/R]

Big Lots ((BIG)), closeout retailer, said its Q2 profit jumped on higher same-store sales and lower costs, beating analyst estimates. The retailer reported net income rise to $23.4 million, or 22 cents per share, up from $4.3 million, or 4 cents per share a year ago. Income from continuing operations soared to $22.1 million, or 21 cents per share, from $4.7 million, or 4 cents per share.

Big Lots lifted its full-year forecast for profit of continuing operations, due to the upbeat Q2 financial results and current business trends. The company expects 2007 earnings from continuing operations to come in the range of $1.43 to $1.48 per share, up from earlier guidance of $1.25 to $1.30 per share. Analysts expect earnings of $1.31 per share.

The estimated figures are based on expectations of a same-store sales increase between 3% and 4%. Big Lots also released Q3 profit guidance in a range of 9 cents to 13 cents per share, assuming same-store sales will increase from 1% to 3%. At the same time, analysts anticipate a profit of 11 cents per share in the period. The retailer projected Q4 earnings between 87 cents and 92 cents per share, assuming the same increase in same-store sales as in Q3. Analysts expect Q4 earnings of 82 cents per share.