The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Blue Nile missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Blue Nile tallied revenue of $112.3 million. The nine analysts polled by S&P Capital IQ foresaw sales of $123.8 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $114.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.43 per share. GAAP EPS of $0.30 for Q4 were 27% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.7%, 130 basis points worse than the prior-year quarter. Operating margin was 5.6%, 240 basis points worse than the prior-year quarter. Net margin was 3.8%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $81.3 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $384.1 million. The average EPS estimate is $0.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 669 members rating the stock outperform and 197 members rating it underperform. Among 302 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 244 give Blue Nile a green thumbs-up, and 58 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blue Nile is hold, with an average price target of $36.13.
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