Why is Big Lots (NYSE: BIG) Surging? — Market Mad House

Strangely, Mr. Market likes discounter Big Lots Inc. (NYSE: BIG) in a pandemic.

Incredibly, Big Lots’ share price grew from $27.68 on 2 January 2020 to $38.87 on 20 January 2020 to $41.73 on 23 July 2020. That’s odd because Big Lots is an old-fashioned discounter that sells overstock items in messy stores.

In contrast to the stock, Big Lots’ revenues are shrinking. To elaborate Big Lots quarterly revenue fell from $1.607 billion on 31 January 2020 to $1.439 billion on 30 April 2020. However, Big Lots’ quarterly revenues grew from $1.296 billion on 30 April 2019.

Moreover, Big Lots’ quarterly gross profit fell from $634.02 million to $570.76 million between 31 January and 30 April 2020. Plus, Big Lots’ quarterly operating income fell from $125.55 million to $74.44 million in the same period.

Conversely, Big Lots’ quarterly operating income grew from $25.64 million on 30 April 2019. Additionally, Big Lots reported a quarterly common net income of $93.76 million on 31 January 2020 that fell to $49.32 million three months later.

How Much Cash Is Big Lots Making?

Big Lots (NYSE: BIG) has more cash than it did last year. For instance, Big Lots reported a quarterly operating cash flow of $146.12 million on 30…