Blue Nile, Inc. First Quarter Earnings Sneak Peek

Blue Nile, Inc. (NASDAQ:NILE) will unveil its latest earnings on Tuesday, May 8, 2012. Blue Nile is an online retailer of high quality diamonds and fine jewelry in the United States.

Blue Nile, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 6 cents per share, a decline of 62.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 18 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 6 cents during the last month. Analysts are projecting profit to rise by 6.5% compared to last year’s 72 cents.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 30 cents per share versus a mean estimate of profit of 42 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 2.6% in revenue from the year-earlier quarter to $82.3 million.

Analyst Ratings: Analysts seem relatively indifferent about Blue Nile with six of eight analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 31.7% to $4.2 million (29 cents a share) from $6.2 million (41 cents a share) the year earlier, missing analyst expectations. Revenue fell 2.1% to $112.3 million from $114.8 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 8.3% in the first quarter of the last fiscal year, 5.1% in the second quarter of the last fiscal year and 11.2%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 32.6% in the third quarter of the last fiscal year and then again in the fourth quarter of the last fiscal year.

Stock Price Performance: Between February 6, 2012 and May 2, 2012, the stock price fell $12.05 (-29.3%), from $41.16 to $29.11. The stock price saw one of its best stretches over the last year between February 1, 2012 and February 9, 2012, when shares rose for seven straight days, increasing 8% (+$3.21) over that span. It saw one of its worst periods between March 26, 2012 and April 5, 2012 when shares fell for nine straight days, dropping 15.1% (-$5.27) over that span.

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

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