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Shares of diamond company Blue Nile increased dramatically last week after the firm released a report predicting that it would earn considerable more money in 2012 than diamond industry analysts had forecast, Bloomberg Businessweek reports.

 

While its net income between April and June dropped by 43% year-over-year, its revenue climbed by 13% on the strength of its engagement ring sales. Buoyed by the revenue report, Blue Nile stood by its earlier February projections of between $384 and $417 million for the 2012 calendar year and per-share earnings of between $0.70 and $0.85.

 

Industry analysts had only anticipated that the company would see revenue of about $391 million and that its shares would earn about $0.67, according to Bloomberg Businessweek.

 

Trading drove shares of Blue Nile to about $32, an 34.7% increase of $8.25 over its pre-report price. At one point on Friday, the stock shot up as high as $35.74.