The 10-second takeaway
For the quarter ended July 1 (Q2), Blue Nile beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Blue Nile booked revenue of $91.0 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $88.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $80.5 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 $0.11. The seven earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.11 for Q2 were 42% lower than the prior-year quarter's $0.19 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 18.9%, 240 basis points worse than the prior-year quarter. Operating margin was 2.6%, 270 basis points worse than the prior-year quarter. Net margin was 1.7%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $86.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $392.4 million. The average EPS estimate is $0.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 650 members out of 844 rating the stock outperform, and 194 members rating it underperform. Among 262 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 201 give Blue Nile a green thumbs-up, and 61 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 $32.50.
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