Big Lots Shares Soar on Lower Loss, CEO Departure

by Christopher Freeburn | December 4, 2012 1:10 pm

Big Lots Shares Soar on Lower Loss, CEO Departure

BigLots185 Big Lots Shares Soar on Lower Loss, CEO Departure[1]Big Lots (NYSE:BIG[2]) 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[3].

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.

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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/03/BigLots185.jpg
  2. BIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=BIG
  3. reported a smaller-than-anticipated loss and announced that its CEO would retire: http://www.dispatch.com/content/stories/business/2012/12/04/big-lots-ceo-retiring.html

Source URL: http://investorplace.com/2012/12/big-lots-shares-soar-on-lower-loss-ceo-departure/
Short URL: http://invstplc.com/1nz0cC0