Big Lots Shares Soar on Lower Loss, CEO Departure

The retailer also raised its earnings outlook for the year

   

BigLots185 Big Lots Shares Soar on Lower Loss, CEO DepartureBig Lots (NYSE:BIG) shares surged more than 12% in Tuesday midday trading after the company reported a smaller-than-anticipated loss and announced that its CEO would retire.

News of the departure came after the close-out retailer reported a third-quarter loss of 10 cents per share. Analysts had expected a much worse loss of 24 cents a share, the Columbus Dispatch noted.

retail shopping display1 Big Lots Shares Soar on Lower Loss, CEO Departure
Specialty Retailers Soar on Earnings

But third-quarter same-store sales in the U.S. fell 4.6% over the prior year.

Big Lots also boosted its earnings estimate for the full year to between $2.86 and $3.05 a share, up from an earlier forecast of between $2.80 and $2.95 a share. The new estimate tops the earnings of $2.80 a share that Wall Street is looking for.

The retailer predicts fourth-quarter earnings of between $1.91 and $2.10 a share. That’s in line with analyst forecasts of $2.01 a share.

CEO, Chairman and President Steven Fishman said he would step aside next year as soon as a replacement was found and would continue with as a consultant to Big Lots. The company has retained an executive recruitment firm to assist with the search for Fishman’s successor.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/big-lots-shares-soar-on-lower-loss-ceo-departure/.

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