Blue Nile Earnings: Here’s Why Shares are Down Now

Blue Nile Inc. (NASDAQ:NILE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.51%.

Blue Nile Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.39 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 21.17% to $136.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Blue Nile Inc. reported adjusted EPS income of $0.39 per share. By that measure, the company missed the mean analyst estimate of $0.47. It missed the average revenue estimate of $145.62 million.

Quoting Management: “The fourth quarter caps off a great year of growth at Blue Nile, building upon our sequential growth while posting greater profitability versus the prior year. Investments we made in 2012 paid off with the highest annual levels of revenue growth and customer acquisition in five years, exceptional strength in engagement sales in the U.S., and a return to strong growth internationally. While we fell short of our expected sales of non-engagement jewelry during the holiday season, in part due to a weaker environment for consumer discretionary spending, we gained valuable insight that will guide the evolution of our product mix. We believe that our strategy to accelerate this part of our business is on track,” said Harvey Kanter, President and Chief Executive Officer.

Key Stats (on next page)…

Revenue increased 51.51% from $89.83 million in the previous quarter. EPS increased 178.57% from $0.14 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 $0.06 to a profit $0.05. For the current year, the average estimate has moved up from a profit of $0.71 to a profit of $0.72 over the last ninety days.

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