Big Lots' Negative Q2 Earnings & Softer Q3 Outlook Keep This Analyst On The Sideline

Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating on the shares of Big Lots Inc BIG with a price target of $23.00.
Feldman said Big Lots's 2Q22 earnings were a disappointment with negative comp and operating losses, but on a relative and adjusted basis, the 2Q22 results came in a touch better than expected.
The analyst added that the quarter was impacted by a slowdown in consumer spending on big-ticket discretionary items.
He noted that the company faced pressure from elevated gas prices and inflation, higher supply chain and operating costs, and the company's decision to step up promotions to clear inventory.
Like many retailers, it appears that COVID-19 helped the company over-earn in the past two years, with the reset underway.
Big Lots' negative Q2 earnings and softer Q3 outlook keep the analyst on the sideline.
Price Action: BIG shares are trading higher by 8.86% at $23.45 on the last check Tuesday.
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