Benzinga | Mar 4, 2021 10:06AM EST

Earnings Preview: Big Lots

Big Lots (NYSE:BIG) releases its next round of earnings this Friday, March 05. Here is Benzinga's essential guide to Big Lots's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Big Lots EPS is expected to be around $2.5, according to sell-side analysts. Sales will likely be near $1.74 billion. In the same quarter last year, Big Lots posted EPS of $2.39 on sales of $1.61 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 4.6% increase in the company's EPS figure. Sales would be up 8.28% from the year-ago period. Here is how the Big Lots's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.66 2.70 0.32 2.53EPS Actual 0.76 2.75 1.26 2.39Revenue Estimate 1.35 B 1.61 B 1.31 B 1.63 BRevenue Actual 1.38 B 1.64 B 1.44 B 1.61 B

Stock Performance

Shares of Big Lots were trading at $62.2 as of March 03. Over the last 52-week period, shares are up 251.41%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Big Lots is scheduled to hold the call at 08:00:00 ET and can be accessed here.