NILE Accelerating Its Investments In International Markets

Analyst Jennifer Milan of Sterne Agee maintains her "neutral" rating on Blue Nile Inc (NASDAQ: NILE), while reducing her estimates for the company.

Blue Nile posted a respectable quarter, with its earnings coming in at $0.35 a share, meeting the lower end of the guidance range. NILE’s total sales jumped 20% to $102.9 million, within the low end of the $100-$109 guidance range. Although EPS guidance for Q1 was lower than the estimates, the company plans to accelerate its investments in the international markets.

Sterne Agee believes that NILE’s top line and EPS growth targets for FY10 are respectable. Although “NILE continues to outperform the industry and remains well positioned to gain share in our view, we believe the company’s growth prospects are largely reflected in the stock price at these levels,” Milan says.

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Sterne Agee has reduced its EPS estimates for 2010 and 2011 from $1.15 to $1.01 and from $1.20 to $1.38, respectively.