Blue Nile (NAS: NILE) is expected to report Q2 earnings on Aug. 2. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Blue Nile's revenues will improve 10.4% and EPS will shrink -63.2%.

The average estimate for revenue is $88.9 million. On the bottom line, the average EPS estimate is $0.07.


Revenue details
Last quarter, Blue Nile recorded revenue of $83.1 million. GAAP reported sales were 3.6% higher than the prior-year quarter's $80.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.01. GAAP EPS of $0.01 for Q1 were 94% lower than the prior-year quarter's $0.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 18.4%, 270 basis points worse than the prior-year quarter. Operating margin was 0.3%, 410 basis points worse than the prior-year quarter. Net margin was 0.2%, 280 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $389.8 million. The average EPS estimate is $0.66.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 648 members out of 843 rating the stock outperform, and 195 members rating it underperform. Among 262 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 202 give Blue Nile a green thumbs-up, and 60 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blue Nile is hold, with an average price target of $33.63.

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The article What to Expect From Blue Nile originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Blue Nile and creating a call spread/risk reversal position in Blue Nile. The Motley Fool has a disclosure policy.

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