Bloomberg News

Big Lots Jumps Most in Two Decades as Earnings Top Estimates (1)

March 07, 2014

Big Lots

A sales associate gathers shopping carts in front of a Big Lots store in Clifton, New Jersey. Photographer: Emile Wamsteker/Bloomberg

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.

To contact the reporter on this story: Ben Livesey in San Francisco at blivesey@bloomberg.net

To contact the editors responsible for this story: Cecile Daurat at cdaurat@bloomberg.net Kevin Orland, James Callan


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Companies Mentioned

  • BIG
    (Big Lots Inc)
    • $46.29 USD
    • 0.94
    • 2.03%
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