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Will Q1 Earnings Hold a Surprise for Big Lots (BIG) Stock?

Big Lots Inc. BIG is slated to report first-quarter fiscal 2016 results on May 27, before the opening bell.

In the preceding quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 1%. Notably, Big Lots has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings beat of 5.1%. Let’s see how things are shaping up for this announcement.

BIG LOTS INC Price, Consensus and EPS Surprise

BIG LOTS INC Price, Consensus and EPS Surprise | BIG LOTS INC Quote

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Big Lots is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Big Lots has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 71 cents. The company’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Factors Influencing this Quarter

Big Lots’ furniture financing programs as well as the food and consumables categories have been gaining traction. In fact, response for furniture financing has been quite impressive. The category, which was the leading performer in the fourth quarter of fiscal 2015, is also expected to drive the company’s revenue higher in the quarter to be reported. However, the competitive retail landscape and lower discretionary spending may impact the company’s results.

For the first quarter, earnings per share from continuing operations are projected in the range of $0.66–$0.72 compared with $0.60 in the prior-year quarter. Comps are expected to grow in the low-single-digit range.

Other Stocks Poised to Beat Earnings

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

TiVo Inc. TIVO has an Earnings ESP of +25.00% and a Zacks Rank #1.

Vail Resorts Inc. MTN has an Earnings ESP of +0.71% and a Zacks Rank #2 (Buy).

NIKE, Inc. NKE has an Earnings ESP of +2.08% and a Zacks Rank #3.

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TIVO INC (TIVO): Free Stock Analysis Report
 
VAIL RESORTS (MTN): Free Stock Analysis Report
 
BIG LOTS INC (BIG): Free Stock Analysis Report
 
NIKE INC-B (NKE): Free Stock Analysis Report
 
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