Sotheby’s Earnings: Here’s Why Investors Don’t Like These Results
Sotheby’s (NYSE:BID) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.89%.
Sotheby’s Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 7.26% to $1.33 in the quarter versus EPS of $1.24 in the year-earlier quarter.
Revenue: Rose 0.28% to $304.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sotheby’s reported adjusted EPS income of $1.33 per share. By that measure, the company missed the mean analyst estimate of $1.37. It missed the average revenue estimate of $318.14 million.
Quoting Management: “Our business and the market for quality art at the high end continue to be strong,” said Bill Ruprecht, Chairman, President and Chief Executive Officer. “We saw significant sales growth in Impressionist, Modern and Contemporary Art and posted the best results in the market in the vast majority of key sales this Spring. We continue to see fierce competition for high-end consignments and as a result, lower auction commission margins.”
Key Stats (on next page)…