Big Lots (BIG) reported earnings on Fri 9 March 18 (b/o)

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** charts after earnings **

  

Big Lots beats by $0.14, reports revs in-line; guides Q1 EPS below consensus; guides FY19 EPS below consensus; Q4 comps -0.1%; approves $100 mln share repurchase program and increases quarterly dividend by 20% 

• Reports Q4 (Jan) earnings of $2.57 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $2.43; revenues rose 4.0% year/year to $1.64 bln vs the $1.65 bln Capital IQ Consensus.
• Comparable store sales decreased 0.1% for the fourth quarter of fiscal 2017, compared to our guidance of flat to an increase of 2%.
• On December 22, 2017, the Tax Cuts and Job Act was enacted into law with new tax provisions effective January 1, 2018. The legislation reduces the U.S. corporate tax rate which lowered the Big Lots blended tax rate for the fourth quarter and full year of fiscal 2017, and in the future. As a result of the lower tax rate, the Company revalued its ending net deferred tax assets resulting in a provisional tax expense of $4.5 million, or $0.11 per diluted share, in the fourth quarter of fiscal 2017.
•  "On March 7, 2018, our Board of Directors approved a share repurchase program providing for the repurchase of up to $100 million of our common shares. The $100 million authorization is expected to be utilized to repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors."
• Co also announced on March 7, 2018 our Board of Directors increased the Company's quarterly dividend payment rate by approximately 20%, declaring a quarterly cash dividend of $0.30 per common share for the first quarter of fiscal 2018.
• As previously announced, the Company noted that David Campisi, President and CEO, took a medical leave of absence in early December 2017 and remains on leave. During his medical leave, Mr. Campisi's executive responsibilities are continuing to be overseen by Lisa M. Bachmann, Executive Vice President, Chief Merchandising & Operating Officer, and Timothy A. Johnson, Executive Vice President, Chief Administrative Officer & Chief Financial Officer. In addition, James R. Chambers, the Company's non-executive chair of the Board, continues to be available to spend additional time in Columbus with the leadership team during the duration of the medical leave.
• Co issues downside guidance for Q1, sees EPS of $1.15-1.22, excluding non-recurring items, vs. $1.32 Capital IQ Consensus Estimate. This guidance assumes a comparable store sales increase in the range of flat to
  slightly negative
• Co issues downside guidance for FY19, sees EPS of $4.75-4.95, excluding non-recurring items, vs. $5.06 Capital IQ Consensus Estimate. Forecasting comparable store sales to increase in the low single digit range. Forecasting cash flow of approximately $120 to $130 million Forecasting cash returned to shareholders of approximately $150 million, including share repurchases and quarterly dividend payments.