Benchmark Has Hold on Blue Nile
The Benchmark Company is out with a research report on Blue Nile (NASDAQ: NILE) and it has a Hold rating and $30 price target on shares, after it reported earnings last night.
In a note to investors, Benchmark writes, "Blue Nile (NILE-Hold, PT from $30) reported 3Q11 net revenue of $75 million, up 11% y/y and ahead of consensus at $73 million and the high end of guidance at $74 million. However, sales growth was partially driven by reduced pricing at Blue Nile despite rough diamond prices remaining up 20-40% y/y, resulting in gross margin compression and an EBITDA decline of 18% y/y to $5.3 million. EPS of $0.13 fell short of consensus at $0.18 and was below the guidance range of $0.16-$0.17."
Shares of NILE are plunging in pre-market, trading down $9.71 to $39.10.
