Big Lots, Inc. (BIG) is gearing up to release its second-quarter earnings results on Friday, September 6th, before the market opens. Analysts are anticipating a loss of $3.46 per share for the quarter, compared to a loss of $3.24 per share in the same period last year. The company projects revenue of $1.04 billion for the quarter.
However, the earnings report comes amidst a backdrop of uncertainty. Big Lots has been grappling with declining sales for several years, and recent reports suggest that the company is exploring bankruptcy as a potential option. This news sent Big Lots shares tumbling 10.9% on Thursday, closing at $0.4553.
Despite the challenging circumstances, analyst opinions remain divided on Big Lots’ future. Telsey Advisory Group’s Joseph Feldman maintains a Market Perform rating with a reduced price target of $1.5 (down from $2.5). Feldman, known for an accuracy rate of 71%, sees a mixed outlook for the company.
Piper Sandler’s Peter Keith, with an accuracy rate of 73%, holds an Underweight rating and lowered his price target from $3.5 to $3. This indicates a more pessimistic view on Big Lots’ prospects.
Meanwhile, Goldman Sachs analyst Kate McShane remains firmly bearish, maintaining a Sell rating with a lowered price target of $4 (from $5). McShane, with an accuracy rate of 66%, believes the company faces significant challenges.
As investors await the earnings release and further developments regarding the bankruptcy rumors, the market remains divided on Big Lots’ future. The company’s performance in the coming quarters will likely determine its trajectory and whether it can overcome its current financial struggles.
