Blue Nile, Inc. Second Quarter Earnings Sneak Peek

Blue Nile, Inc. (NASDAQ:NILE) will unveil its latest earnings on Thursday, August 4, 2011. Blue Nile Inc. 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 net income of 22 cents per share, a rise of 15.8% 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 23 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 22 cents during the last month. For the year, analysts are projecting profit of $1.05 per share, a rise of 11.7% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 16 cents per share against a mean estimate of profit of 15 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $84.1 million in revenue this quarter, a rise of 9.8% from the year ago quarter. Analysts are forecasting total revenue of $368.3 million for the year, a rise of 10.6% from last year’s revenue of $332.9 million.

Analyst Ratings: Analysts seem relatively indifferent about Blue Nile with nine of 13 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 1.4% while it rose 13.6% in the fourth quarter of the last fiscal year and 7.7% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.3% to $80.2 million in first quarter. The figure rose 11.5% in the fourth quarter of the last fiscal year from the year earlier, climbed 0.8% in the third quarter of the last fiscal year from the year-ago quarter and 9.7% in the second quarter of the last fiscal year.

Competitors to Watch: Zale Corporation (NYSE:ZLC), DGSE Companies, Inc. (AMEX:DGSE), Tiffany & Co. (NYSE:TIF), Birks & Mayors Inc. (AMEX:BMJ), Signet Jewelers Ltd. (NYSE:SIG).

Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $15.73 (-27.1%) from $58.09 to $42.36. The stock price saw one of its best stretches over the last year between October 26, 2010 and November 5, 2010 when shares rose for nine-straight days, rising 15.6% (+$6.51) over that span. It saw one of its worst periods between November 11, 2010 and November 23, 2010 when shares fell for nine-straight days, falling 8.8% (-$4.28) over that span. Shares are down $14.70 (-25.8%) year to date.

(Source: Xignite Financials)

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