Blue Nile Inc. Fourth Quarter Earnings Sneak Peek

Blue Nile, Inc. (NASDAQ:NILE) will unveil its latest earnings on Wednesday, February 15, 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 analyst estimate is for profit of 42 cents per share, a rise of 2.4% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 3.2% compared to last year’s 91 cents.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the third quarter, it missed the mark by 5 cents as a result of reporting net income of 13 cents against an estimate of profit of 18 cents per share. In the second quarter, the company fell short of forecasts by 3 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.3% in revenue from the year-earlier quarter to $123.2 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 third quarter, profit fell 32.6% to $1.9 million (13 cents a share) from $2.8 million (19 cents a share) the year earlier, missing analyst expectations. Revenue rose 11.2% to $75 million from $67.5 million.

Key Stats:

The decrease in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 1.2% in the second quarter, 1.4% in the first quarter and 13.6% in the fourth quarter of the last fiscal year.

Revenue has increased in each of the past four quarters. Revenue rose 5.1% in the second quarter from the year earlier, climbed 8.3% in the first quarter from the year-ago quarter and 11.5% in the fourth quarter of the last fiscal year.

Stock Price Performance: Between November 11, 2011 and February 9, 2012, the stock price rose $9.79 (29.3%), from $33.41 to $43.20. 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 April 8, 2011 and April 18, 2011 when shares fell for seven straight days, dropping 10.6% (-$6.06) over that span.

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

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