Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How to Trade Big Lots, Inc. (BIG) Following Earnings Results

Following the release of its financial results, Big Lots, Inc. (NYSE:BIG)‘s opened 5% in the red and has since slightly recovered, although it is still trading more than 2% lower. The company managed to narrow its net loss to $0.03 per share in the third fiscal quarter, ended October 31, from $0.06 reported a year earlier. Excluding a special $0.02 per share expense related to the termination of a legacy pension plan, Big Lots’ net loss amounted to just $0.01 per share, which is still below the analyst estimates of a flat profit for the quarter. The revenue inched up by an annual 0.08% to $1.12 billion and was in line with the Street’s expectations. Comparable store sales went up by 2.6% in the quarter, in line with the company’s previous guidance of 2% to 3%.

For the current quarter, Big Lots, Inc. (NYSE:BIG), which operates a chain of discount stores, expects an adjusted net income between $1.95 and $2.00 per share, which translates to an increase of 11% to 14% on the year. For the full fiscal 2015, the adjusted EPS are forecasted in the range of $2.95 to $3.00, which represent an increase of 20% to 22%.

Since many investors can sometimes overlook the long-term potential of a stock and focus on short-term events, such as financial results, it’s important to assess what smart money investors think about a particular company, since they usually see the big picture and invest in a stock based on its fundamentals. Interestingly, Big Lots, Inc. (NYSE:BIG) registered a decline in interest from the funds we track at Insider Monkey, as you will see later on in this article.

If you’d ask most shareholders, hedge funds are assumed to be underperforming, old financial vehicles of yesteryear. While there are over 8000 funds in operation today, We choose to focus on the aristocrats of this group, about 700 funds. Most estimates calculate that this group of people preside over the lion’s share of the smart money’s total capital, and by tracking their first-class investments, Insider Monkey has deciphered various investment strategies that have historically outperformed the market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points per year for a decade in their back tests.

Now, let’s go over the recent action regarding Big Lots, Inc. (NYSE:BIG).

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.