Blue Nile Earnings: Here’s Why Investors are Not Excited Now

Blue Nile Inc. (NASDAQ:NILE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.66%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Blue Nile Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 600% to $0.07 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 16.85% to $97.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Blue Nile Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $96.9 million.

Quoting Management: “We are pleased to announce significant revenue growth along with expanding profitability in the first quarter of 2013,” said Harvey Kanter, President and Chief Executive Officer. “Clearly our value proposition continues to resonate with consumers, both in the US and internationally. We look to build on this momentum through our ongoing investments to enhance our customers’ website experience, present a deep assortment of compelling products, and provide world class customer service.”

Key Stats (on next page)…

Revenue decreased 28.67% from $136.12 million in the previous quarter. EPS decreased 82.05% from $0.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.94 to a profit of $0.80 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]