Big Lots Inc. (BIG:US), the seller of discontinued and overproduced goods, jumped the most in more than two decades after posting profit that topped analysts’ estimates.
The stock climbed 23 percent to $35.97 at the close in New York for the biggest one-day gain since December 1990. The shares have gained 11 percent this year, compared with a 1.6 percent advance for the Standard & Poor’s 500 Index.
Adjusted fourth-quarter profit from continuing U.S. operations was $1.45 a share, the Columbus, Ohio-based company said today in a statement. The average of analysts’ estimates compiled by Bloomberg was $1.38. Sales were $1.64 billion, topping analysts’ $1.63 billion average projection.
Big Lots may again be a target of private-equity firms as it produces more cash relative to its share price than rivals, according to Wedbush Inc. Big Lots, which explored a sale in 2011, scaled back sales and profit estimates last year and shuffled management as revenue declined at stores open more than a year.
Big Lots also announced today that it gave Chief Financial Officer Timothy A. Johnson the additional post of executive vice president and that its board had authorized a $125 million share buyback program.
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