Blue Nile Q3 Earnings Top Estimates; To Buyback Shares Up To $100 Mln

(RTTNews) - Online retailer of diamonds and fine jewelry Blue Nile, Inc. (NILE) Thursday reported higher third quarter earnings, that topped the Street estimates, particularly for a tax benefit of $1.1 million, or $0.08 per share. Citing its confidence in the strength of the business model, the company said it has been authorized to repurchase up to $100 million of its shares, over a period of two years.

Earnings during the 3-month period rose to $2.9 million, or $0.23 per share, from $1.7 million, or $0.14 per share, a year earlier. On an average, 11 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.16 for the quarter. Analysts' estimates typically exclude one-time items.

Demonstrating a trend of double-digit growth for six consecutive quarters, the company's sales rose 10.1 percent to $98.9 million from $89.8 million a year ago. Analysts had estimated third-quarter sales of $99.82 million.

For the fourth quarter, the company expects sales to be between $146 million and $161 million, while earnings per share are expected to be $0.37-$0.46. Analysts estimate fourth quarter sales to be $152.33 million and earnings per share to be $0.43.

Blue Nile expects sales for the full-year to be between $450 million and $465 million. Earnings per share are projected at $0.84-$0.93. Analysts estimate 2013 revenues of $457.98 million and earnings per share of $0.82.

Wednesday the stock closed at $34.86 on the Nasdaq.