Blue Nile Inc. Third Quarter Earnings Sneak Peek

Blue Nile, Inc. (NASDAQ:NILE) will unveil its latest earnings on Tuesday, November 8, 2011. 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 18 cents per share, a decline of 5.3% 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 22 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 18 cents during the last month. For the year, analysts are projecting net income of $1.02 per share, a rise of 8.5% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported profit of 19 cents per share against a mean estimate of 22 cents. Two quarters ago, it beat expectations by one cent with net income of 16 cents.

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Wall St. Revenue Expectations: On average, analysts predict $72.6 million in revenue this quarter, a rise of 7.6% from the year ago quarter. Analysts are forecasting total revenue of $357 million for the year, a rise of 7.2% from last year’s revenue of $332.9 million.

Analyst Ratings: Analysts seem relatively indifferent about Blue Nile with nine of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 1.2% to $2.8 million (19 cents a share) from $2.8 million (19 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 5.1% to $80.5 million from $76.6 million.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 1.4% in the first quarter and 13.6% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 8.3% in the first quarter from the year earlier, climbed 11.5% in the fourth quarter of the last fiscal year from the year-ago quarter and 0.8% in the third 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), Coach, Inc. (NYSE:COH), Signet Jewelers (NYSE:SIG), (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Nordstrom (NYSE:JWN) and Macy’s (NYSE:M).

Stock Price Performance: During August 9, 2011 to November 2, 2011, the stock price had risen $11.06 (32.8%) from $33.72 to $44.78. The stock price saw one of its best stretches over the last year between August 19, 2011 and August 29, 2011 when shares rose for seven-straight days, rising 27.9% (+$8.50) 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 $12.28 (-21.5%) year to date.

(Source: Xignite Financials)

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