The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Blue Nile missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins dropped across the board.
Blue Nile recorded revenue of $136.1 million. The nine analysts polled by S&P Capital IQ looked for revenue of $145.3 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $112.3 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 $0.39. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.39 for Q4 were 30% higher than the prior-year quarter's $0.30 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%, 180 basis points worse than the prior-year quarter. Operating margin was 5.2%, 40 basis points worse than the prior-year quarter. Net margin was 3.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $96.4 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $457.5 million. The average EPS estimate is $0.95.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 635 members out of 835 rating the stock outperform, and 200 members rating it underperform. Among 273 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 213 give Blue Nile a green thumbs-up, and 60 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 $41.44.
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