NEW YORK, Feb 14 (Reuters) - Shares in online jeweler Blue Nile are poised to fall further after the company reported disappointing fourth-quarter results, the business newspaper Barron's reported on Sunday.
It noted that Blue Nile's stock has fallen 21 percent since Jan 1 and trades at 48 times estimated 2010 earnings of $1.05 per share.
By contrast, Barron's said rival Tiffany's price/earnings multiple is only 17 times this year's expected net.
On Friday, Blue Nile's stock dropped 4.4 percent to $50.24 on the New York Stock Exchange.
The newspaper quoted one anonymous investor as saying the shares could fall to $35, given weak demand and fierce competition in the fine jewelry market.
On Thursday, Blue Nile reported net income of $5.4 million, or 35 cents per share, from a profit of $3.5 million, or 24 cents per share a year earlier. But the results missed analysts' expectations for 38 cents per share, according to Thomson Reuters I/B/E/S.
Although sales rose 20 percent to $102.9 million, they missed analysts' expectations of $106.2 million.
In its report, Barron's said company executives have sold 'a lot' of Blue Nile stock in the past 12 months, including chairman Mark Vadon who it said sold $14.8 million worth and reduced his holding to 7.3 percent of shares.
Barron's said the sales suggest 'Blue Nile's executives might not have considered the shares such a gem.'
(Reporting by Steve James; editing by Gunna Dickson) Keywords: BLUENILE/ (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It noted that Blue Nile's stock has fallen 21 percent since Jan 1 and trades at 48 times estimated 2010 earnings of $1.05 per share.
By contrast, Barron's said rival Tiffany's price/earnings multiple is only 17 times this year's expected net.
On Friday, Blue Nile's stock dropped 4.4 percent to $50.24 on the New York Stock Exchange.
The newspaper quoted one anonymous investor as saying the shares could fall to $35, given weak demand and fierce competition in the fine jewelry market.
On Thursday, Blue Nile reported net income of $5.4 million, or 35 cents per share, from a profit of $3.5 million, or 24 cents per share a year earlier. But the results missed analysts' expectations for 38 cents per share, according to Thomson Reuters I/B/E/S.
Although sales rose 20 percent to $102.9 million, they missed analysts' expectations of $106.2 million.
In its report, Barron's said company executives have sold 'a lot' of Blue Nile stock in the past 12 months, including chairman Mark Vadon who it said sold $14.8 million worth and reduced his holding to 7.3 percent of shares.
Barron's said the sales suggest 'Blue Nile's executives might not have considered the shares such a gem.'
(Reporting by Steve James; editing by Gunna Dickson) Keywords: BLUENILE/ (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.