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Bluenile Stock Price Sinks on Disappointing Results.

Shares of Blue Nile (NILE:Nasdaq )dropped sharply in late trading Tuesday after the online jewelry retailer posted weaker-than-expected results for the holiday quarter and issued a 2006 forecast below Wall Street's projection.

The company reported a fourth-quarter profit of $5.3 million, or 29 cents a share, up from $4.6 million, or 24 cents a share, a year earlier. Analysts polled by Thomson First Call expected earnings of 33 cents a share.

Blue Nile's sales rose to $73.2 million from $64.5 million, but were well below Wall Street's target of $80.3 million.

The company's outlook also disappointed Wall Street. For the quarter ending April 2, Blue Nile forecast earnings of 11 cents to 12 cents a share, with sales of $47 million to $49 million. The forecast include stock-option expenses of 3 cents to 4 cents a share. Analysts, meanwhile, had been expecting first-quarter earnings of 19 cents a share and sales of $54.1 million.

For all of 2006, Blue Nile sees earnings of 62 cents to 72 cents a share, including 14 cents to 16 cents in options costs. Analysts predict earnings of 99 cents a share, before options. The company forecast sales of $220 million to $245 million, below Wall Street's target of $258 million.

Blue Nile shares were down $6.91, or 19%, to $30.38 in after-hours trading.

Two weeks ago we pointed out that Bluenile Insiders have been constantly and consistently selling their stock.

Blue Nile Sees Stars

So much for competing with Tiffany.


Posted by Barry Gutwein on February 7, 2006 7:01 PM in E-Commerce. | Comments (38)

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