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ovenerio
Omar Venerio
Articles (1681) 

Friday Morning Market Highlights

Dow down more than 150 points, Big Lots jumps following earnings report

US markets

U.S. stocks were in the red on Friday morning as U.S. consumer spending sunk by a record 13.6%The Dow Jones Industrial Average lost 0.60% to 25,247, the S&P 500 index dipped 0.39% to 3,018and the Nasdaq Composite Index was up 0.03% to 9,372.

Gainers

• Dollar General Corp (NYSE:DG) +2.6%

• West Pharmaceutical Services Inc (NYSE:WST) +1.4%

• Arista Networks Inc (NYSE:ANET) +2.1%

• Domino's Pizza Inc (NYSE:DPZ) +2%

• Paycom Software Inc (NYSE:PAYC) +2%

Losers

• DXC Technology Co (NYSE:DXC) -9.2%

• Nordstrom Inc (NYSE:JWN) -8.6%

• Coty Inc (NYSE:COTY) -7.2%

• Harley-Davidson Inc (NYSE:HOG) -5.3%

• Flowserve Corp (NYSE:FLS) -3.3%

• Kohls Corp (NYSE:KSS) -4%

Global markets

The main European stock markets traded in the green.The UK's FTSE 100 fell 1.80%, France's CAC 40 declined 1.10%, Germany's Dax swelled 1.39% and Spain's Ibex 35 was down 1.25%.

In Asia, Japan's Nikkei 225 slid 0.18%, India’s BSE Sensex jumped 0.69%, Hong Kong's Hang Seng declined 0.74% and China's Shanghai Composite rose 0.22%.

Big Lots releases earnings report

Shares of Big Lots, Inc. (NYSE:BIGjumped 1% on Friday morning after the company announced its first-quarter results. It posted earnings per share of $1.26,beating analysts’ estimates by 86 cents. Revenue of $1.44 billion grew 10.8% year-over-year and beat analyst predictions by $120 million.

CEO Bruce Thorn had the following to say:

"I am very proud of our team over the past quarter. We've grown as an organization through these unprecedented times, and it has been amazing to see the team step up our game. Most importantly, our primary focus has been on maintaining a safe and healthy environment for our associates and customers. In turn, that has enabled us to keep our store and ecommerce operations open, and continue serving both our loyal existing customers and many new ones. Our strong financial results are the outcome of those efforts, and I want to give a big and special thanks to all of our associates, and particularly to our associates working in our stores and distribution centers."

Net sales were $1.44 billion, an 11.1% increase compared to $1.30 billion in the prior-year quarter, fueled by a 10.3% increase in comparable sales and sales growth from new and relocated non-comp stores.

Looking at the financial position, the company had $312 million of cash and equivalents and $437 million in long-term debt. In the first quarter of fiscal 2019, the company had $64 million of cash and equivalents and $470 million of long-term debt. 

The Board of Directors declared a quarterly cash dividend of 30 cents per share, which will be payable on June 26, 2020.

Looking ahead to the second quarter, the company expects diluted earnings per share to be between 65 and 80 cents.

Lee Ainslie (Trades, Portfolio) initiated a new position of 425,716 shares in Big Lots. Robert Olstein reduced his holding 4% to 89,000 shares, Joel Greenblatt (Trades, Portfolio) cut his holding 11% to 80,006 shares and Louis Moore Bacon (Trades, Portfoliosold out of the stock.

Disclosure:The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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