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Omar Venerio
Omar Venerio
Articles (1514) 

Global Stocks Decline Friday on Mexican Tariffs

Big Lots reports positive results for the first quarter

Stock market indexes were in negative territory on Friday after President Donald Trump announced on Twitter the U.S. will impose a 5% tariff on all goods from Mexico on June 10. The Dow Jones Industrial Average fell 1.28% to 24,847, the S&P 500 index declined 1.23% to 2,754 and the Nasdaq Composite Index plummeted 1.43% to 7,459.

Shares of Big Lots Inc. (NYSE:BIG) gained almost 6% on Friday after the company announced first-quarter results. Revenue grew 2.4% from the prior-year quarter to $1.3 billion, beating expectations by $10 million. Earnings of 92 cents per share topped estimates by 22 cents per share.

In a statement, President and CEO Bruce Thorn said the quarter was "a solid start to our new fiscal year with sales growth and comps in line with guidance and adjusted EPS meaningfully higher than our expectations."

"Our first quarter sales result represents the fourth consecutive quarter of positive comps, which is encouraging in light of the delayed income tax refunds and macro weather challenges in many of our markets,” he added.

Looking at the balance sheet, inventory ended the quarter with $927 million, up from $850 million in the year-ago quarter. The company also had $64 million in cash and cash equivalents.

Further, during the first quarter, the company repurchased $48 million worth of shares, which, combined with quarterly dividend payments, represent approximately $61 million returned to shareholders.

Looking ahead to the second quarter, the company expects adjusted income to be between 35 cents and 45 cents per diluted share, compared to income of 59 cents per diluted share in the prior-year quarter. For full fiscal 2019, it projects adjusted income to be in the range of $3.70 to $3.85 per diluted share, compared to prior guidance of adjusted income of $3.55 to $3.75 per diluted share.

Gainers

Losers

Global markets

The main European stock markets traded in the red as well. The U.K.'s FTSE 100 lost 0.78%, France's CAC 40 dipped 0.79%, Germany's Dax tumbled 1.47% and Spain's Ibex 35 declined 1.68%.

In Asia, Japan's Nikkei 225 fell 1.63%, India’s BSE Sensex retreated 0.30%, Hong Kong's Hang Seng swelled 0.79% and China's Shanghai Composite slid 0.24%.

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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