Earnings Preview: Big Lots (BIG)

Big Lots Inc. BIG is currently higher on the session by 0.57%, trading at $31.98. The company is scheduled to report earnings August 24th, before the bell. • Estimates The Street is looking for Q2 earnings per share of $0.47 on revenue of $1.15 billion. These estimates have risen by $0.03 (+6.82%) over the past 90 days. The Whisper number for BIG is $0.49. • Guidance The Street is looking for Q3 EPS of $0.31 on revenue of $1.10 billion. The full year 2010 estimates are $2.85 per share on revenue of $5.01 billion; FY 2011 is at $3.21 per share on revenues of $5.30 billion. • Technical Picture BIG has been rallying sine January of 2009, when it tested and held a multi-year support level. Recently, the stock has breeched the $30.00 resistance level, which has been resistance for nearly ten years; technically theory suggests that that level is now support. With BIG consolidating lower for the past four months, bulls may be looking to reload on this name. • Volatility Both historical volatility and implied volatility have been down trending over the past three months after a spike higher in mid-May, though implied and historical has recently diverged. Currently HI is at 33% and IV is at 38%. The front month $32.50 straddle is trading at 39.84%; the October $32.50 straddle is trading at 36.31% Big Lots, Inc. through its wholly owned subsidiaries is a closeout retailer. The company's merchandising categories include Consumables, Home, Furniture, Hardlines, Seasonal, and Other. As of January 30, 2010, the company operated a total of 1,361 stores in 47 states.