Big Lots Affirms Q4 View, Lifts FY16 Forecast As It Turns To Profit In Q3

(RTTNews) - Big Lots, Inc. (BIG), a discount and closeout retailer, on Friday affirmed its fourth-quarter guidance for adjusted income from continuing operations in the range of $2.18 to $2.23 per share, compared to last year's $2.01 per share. The company also confirmed its comparable store sales outlook in the range of flattish to +2%, compared to a 0.7% increase a year ago.

Further, for fiscal 2016, the company lifted its forecast and now expects adjusted income from continuing operations to be in the range of $3.55 to $3.60 per share, compared to previous guidance of $3.45 to $3.55 per share. The outlook represents an 18% to 20% increase from last year's $3.01 per share.

The company continues to expect comparable store sales to increase in the range of 1% to 2%, and total sales up slightly.

On average, 14 analysts polled by Thomson Reuters expect earnings of $2.21 per share for the fourth quarter and $3.53 per share for the full year. Analysts' estimates typically exclude special items.

In addition, Big Lots said it now expects to complete the process of terminating legacy pension plans during the fourth quarter of fiscal 2016 with cash payouts totaling approximately $15 million.

In the third quarter, the company's net income was $1.38 million or $0.03 per share, compared to last year's loss of $1.51 million or $0.03 per share.

Adjusted income from continuing operations totaled $1.9 million, or $0.04 per share, compared to loss of $0.2 million, or $0.00 per share a year ago.

Net sales for the quarter decreased 1% to $1.105 billion from $1.12 billion last year, a result of a lower store count.

Comparable store sales were flat for the third quarter of fiscal 2016, compared to guidance of flat to an increase of 2%.

Analysts expected loss of $0.01 per share on sales of $1.12 billion for the quarter.

The company further said it will return $288 million to shareholders through share repurchase investments and quarterly dividend payments.

Separately, Big Lots announced that its Board of Directors declared a quarterly cash dividend of $0.21 per share. The dividend will be paid on December 30, to shareholders of record as of the close of business on December 16.