$BIG Q3 2022 Earnings Report

$BIG Short

Big Lots is a retail company that sells home products such as furniture, mattresses, patio and garden items, home decor, storage items, groceries, bed and bath essentials, toys, and clothing. As a discount retailer, Big Lots sells items at competitive prices. Looking back at their reports, they have missed the estimates the last two times and things aren’t looking any better this quarter. During the last quarter, their estimated EPS was 0.95, and delivered -0.39, missing it by around 140%. And for this quarter, their EPS has been revised even lower to -2.47. Additionally speaking, most financial institutions have also revised their estimates to a lower number recently. This number represents a year-over-year change of -307.3%. Revenues are expected to be $1.36 billion, down 6.5% from a year ago. Dollar Tree is another similar store where they keep their prices as low as possible like Big Lots in order to attract more customers and they also missed the estimates heavily. I believe manufacturing and handling costs are also much cheaper for Dollar Store compared to Big Lots due to the items they sell so Big Lots will also have to deal with things such as high transportation costs for their big items. At the same time, most people aren’t moving out or getting a new house right now so they don’t have a reason to purchase new housing items such as furniture and prefer to use their old ones as opposed to Dollar Store where many of the things they sell are around a Dollar so financially it's affordable for everyone and yet they failed to beat the estimates. Market Cap:626,641,597 P/E Ratio:9.95 Initial reaction:Short Researched reaction:Short CEO: Time:Before open Estimate:-10%