Yahoo Finance Big Lots 4Q revenue beats despite 1 less week
Big Lots 4Q hurt by 1 less week in the period but revenue beats analysts' expectations
COLUMBUS, Ohio (AP) -- Big Lots' fourth-quarter net income declined 30 percent, hurt by one less week in the period and declining sales.
But revenue topped expectations and shares rose 13 percent in premarket trading after the closeout retailer reported a loss from its Canadian operations that was less than projected.
Big Lots Inc. earned $84.4 million, or $1.45 per share, for the period ended Feb. 1. A year earlier the Columbus, Ohio, company earned $120.3 million, or $2.09 per share. The extra week in the year-ago period was worth about 5 cents per share.
Stripping out a deferred tax benefit of 41 cents per share related to its Canadian operations, income from continuing operations was 98 cents per share.
Analysts surveyed by FactSet expected earnings of $1.30 per share.
The loss from its Canadian operations was 47 cents per share, which was not nearly as bad as the 65- to 75-cent loss that many had expected.
Big Lots made its first expansion outside of the U.S. in 2011 when it acquired Liquidation World Inc. for $20 million, but growth was never as great as the company had anticipated.
All of those stores were closed by the beginning of this month and it will report those assets as discontinued operations starting with the first quarter.
Revenue fell 6 percent to $1.64 billion from $1.74 billion, but still beat Wall Street's estimate of $1.61 billion. Sales were also trimmed by the shorter reporting period.
However, comparable store sales also declined by 3 percent. That metric strips out the volatility of stores that have opened or closed within the past year.
For the entire year, Big Lots earned $125.3 million, or $2.16 per share. That compares with $177.1 million, or $2.93 per share, in the previous year.
Adjusted income from continuing operations was $1.75 per share.
Annual revenue dipped 1 percent to $5.3 billion from $5.37 billion.
Big Lots foresees fiscal 2014 income from continuing operations between $2.25 and $2.45 per share. It anticipates sales at U.S. stores open at least 15 months will be flat to up 2 percent.
In the first quarter the company anticipates income from continuing operations in a range of 40 to 45 cents per share.
Analysts predict full-year earnings of $2.44 per share and first-quarter earnings of 50 cents per share.
Shares of Big Lots rose $3.80 to $33.10 before the opening bell.
