Blue Nile Earnings: Investors LOVE These Numbers

Rising costs hurt Blue Nile Inc. (NASDAQ:NILE) in the second quarter as profit dropped from a year earlier. Blue Nile is an online retailer of high quality diamonds and fine jewelry in the United States.

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Blue Nile Inc. Earnings Cheat Sheet

Results: Net income for Blue Nile Inc. fell to $1.6 million (11 cents per share) vs. $2.8 million (19 cents per share) a year earlier. This is a decline of 44.4% from the year-earlier quarter.

Revenue: Rose 13% to $91 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Blue Nile Inc. beat the mean analyst estimate of 7 cents per share. It beat the average revenue estimate of $82.3 million.

Quoting Management: “We are pleased to report significant revenue growth along with improved profitability, and we are especially excited about the continued acceleration in the sales of engagement products. This affirms that our current strategy is working, particularly with favorable conditions in the diamond supply market. As we move forward, we are very excited about our plans to ignite growth in the sales of our non-engagement products through the evolution of our assortment,” said Harvey Kanter, President and Chief Executive Officer.

Key Stats:

For each of the last four quarters, the company has seen its net income fall. In the first quarter, net income fell 93.6% while the figure fell 31.7% in the fourth quarter of the last fiscal year and 32.6% in the third quarter of the last fiscal year.

After two quarters of falling short, the company beat estimates last quarter. In the first quarter, it missed the mark by 5 cents, and in the fourth quarter of the last fiscal year, it came in under estimates by 12 cents.

The comapny’s revenue has not increased in each of the last two quarters. In the first quarter, revenue increased 3.6% to $83.1 million from the year-earlier quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the third quarter has gone up from 15 cents per share to 18 cents. Over the past sixty days, the average estimate for the fiscal year has reached 66 cents per share, a decline from 76 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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