The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Blue Nile beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins dropped across the board.
Blue Nile notched revenue of $89.8 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $88.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $75.0 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 $0.14. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.14 for Q3 were 7.7% higher than the prior-year quarter's $0.13 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 18.8%, 100 basis points worse than the prior-year quarter. Operating margin was 3.0%, 80 basis points worse than the prior-year quarter. Net margin was 1.9%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.5 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $398.9 million. The average EPS estimate is $0.71.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 646 members out of 855 rating the stock outperform, and 209 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 216 give Blue Nile a green thumbs-up, and 66 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 $34.44.
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