Big Lots 1Q adj. profit meets Wall Street's view

COLUMBUS, Ohio (AP) -- Big Lots' first-quarter net income fell 21 percent, but the discount retailer met Wall Street expectations when one-time charges are removed.

The company lowered its full-year revenue forecast, however, citing its first-quarter performance, which also fell just shy of most projections.

Big Lots earned $32.3 million, or 56 cents per share, for the period ended May 4. That compares with $40.7 million, or 63 cents per share, a year earlier.

Removing a charge of 6 cents per share, earnings from continuing operations were 61 cents per share.

Revenue increased 2 percent to $1.31 billion from $1.29 billion, led by higher sales in Canada. The U.S. posted a slight sales gain.

Wall Street forecast $1.32 billion in revenue.

Revenue at stores open at least a year declined 2.5 percent. Analysts pay close attention to that number as an indicator of a retailer's health because it strips away the volatility from stores recently opened or closed.

Big Lots anticipates full-year adjusted earnings from continuing operations between $2.87 and $3.12 per share. Its previous outlook was for earnings of $3.05 to $3.25 per share. Revenue is now expected to rise 1 percent to 2 percent. The company's prior guidance was for a 2 percent to 3 percent increase. Based on 2012's $5.4 billion, the revised forecast implies about $5.46 billion to $5.51 billion.

Analysts predict earnings of $3.16 per share on revenue of $5.49 billion.

For the second quarter, the Columbus, Ohio, company foresees earnings in a range of 17 to 27 cents per share. Revenue is forecast to be up or down by 1 percent. Based on the prior-year period's $1.22 billion, that implies approximately $1.21 billion to $1.23 billion.

Wall Street is looking for earnings of 43 cents per share on revenue of $1.26 billion.

Big Lots Inc. had 1,505 of its namesake stores in the 48 states, one store in Canada, and 79 Liquidation World and LW stores in Canada at quarter's end.