Blue Nile Earnings: Here’s Why Investors are Not Happy 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 3.43%.

Blue Nile Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 54.55% to $0.17 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 18.71% to $108 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Blue Nile Inc. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.16. It beat the average revenue estimate of $103.04 million.

Quoting Management: “We are excited to have achieved double digit revenue growth in the second quarter of 2013 across the three main categories of our business: U.S. engagement, U.S. non-engagement and international,” said Harvey Kanter, President and Chief Executive Officer. “This represents the fifth consecutive quarter of double digit growth and further demonstrates our position as a leading global retailer of high-quality diamonds and fine jewelry. We continue to provide our customers with a superior shopping experience, unparalleled value proposition, and top-notch customer service. We are also excited by our ongoing development of compelling website features that will be dynamically available across all devices.”

Key Stats (on next page)…

Revenue increased 11.21% from $97.11 million in the previous quarter. EPS increased 142.86% from $0.07 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.17 to a profit $0.18. For the current year, the average estimate has moved up from a profit of $0.80 to a profit of $0.82 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] wallstcheatsheet.com)