The 10-second takeaway
For the quarter ended April 1 (Q1), Blue Nile met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Blue Nile recorded revenue of $83.1 million. The seven analysts polled by S&P Capital IQ wanted to see net sales of $82.3 million on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $80.2 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 $0.01. The eight earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.01 for Q1 were 94% lower than the prior-year quarter's $0.16 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 18.4%, 270 basis points worse than the prior-year quarter. Operating margin was 0.3%, 410 basis points worse than the prior-year quarter. Net margin was 0.2%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $89.2 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $391.1 million. The average EPS estimate is $0.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 657 members out of 857 rating the stock outperform, and 200 members rating it underperform. Among 286 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 224 give Blue Nile a green thumbs-up, and 62 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 $33.63.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Blue Nile. Motley Fool newsletter services have recommended creating a position in Blue Nile. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.