Retail
Short Sellers In Big Lots Ahead of Earnings (BIG)
Published:
Last Updated:
On Wednesday morning we’ll get to see earnings out of Big Lots Inc. (NYSE: BIG). The estimates for the closeout retailer from First Call are $0.84 EPS on $1.41 billion in revenues. Next quarter estimates are $0.26 EPS on $1.11 billion in revenues. Estimates for fiscal Jan-2009 are $1.53 EPS on $4.64 billion in revenues.
Its strategy change to add some slightly more upscale items couldn’t have come at a worse time when you consider that the discretionary income of its customers flew out the window of the 1978 station wagon.
Analysts have an average price target of $18.00. We’d also note that the short interest has grown to more than 24 million shares, which is almost 8-days worth of trading volume.
Big Lots’ 52-week trading range is $12.40 to $36.15. This is one we have been critical of for a while, although it appears that at least most of the damage to the stock may have been seen. Either way, we think it will take a long time, a lot patience, and maybe even a miracle for this to not stay in the bottom third of ist 52-week trading range since it has already recovered sharply.
Despite our negativity, we’ll still be the first to admit that any "non-atrocious news" will probably create a minimum of a short covering rally.
Jon C. Ogg
March 1, 2008
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
