Blue Nile Q4 Results Beat Analysts' Estimates

Internet diamonds and jewelry retailer Blue Nile Inc reports fourth-quarter earnings ahead of analysts' estimates with sales jumping sharply. Sales rose 30 percent to $64.5 million from $49.6 million a year ago. Analysts expected Blue Nile to earn 22 cents a share on sales of $61.3 million.

Quarterly income dropped to $4.6 million, or 24 cents per share, from $20.9 million, or $1.27 a share, last year. The year-ago figures, however, included a gain of $15.7 million from the realization of deferred tax assets.

For the year, earnings were $10 million, or 56 cents a share, compared with $27 million, or $1.65 a share in 2003. Income before income taxes was $15.6 million, up from $11.3 million last year. Sales rose 31 percent to $169.2 million from $128.9 million in 2003. Analysts were looking for earnings of 53 cents a share on sales of $165.9 million for 2004.

Blue Nile expects first-quarter earnings of 10 cents to 12 cents a share on sales of $42 million to $44 million. For the year, earnings are projected to be 67 cents to 72 cents a share on sales of $200 million to $212 million.

Debt-free and with $101 million in cash and marketable securities the company has plenty of cash to make other investments as they become available.

In addition, a 100 percent rise in free cash flow in the fourth quarter to $29.6 million will allow it to buy back $30 million of its shares in the next 12 months.