Sotheby’s Earnings: Here’s Why the Stock is Falling Now

Sotheby’s (NYSE:BID) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.16%.

Sotheby’s Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 7.69% to $0.96 in the quarter versus EPS of $1.04 in the year-earlier quarter.

Revenue: Rose 2.42% to $291.12 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sotheby’s reported adjusted EPS income of $0.96 per share. By that measure, the company missed the mean analyst estimate of $1.09. It beat the average revenue estimate of $278.84 million.

Quoting Management: “Consolidated sales* in 2012 were a robust $5.4 billion as healthy bidding continued around the world for great works of art,” said Bill Ruprecht, Chairman, President and Chief Executive Officer. “Our operating results reflect some significant successes, a stiff comparison to one of the best years in Sotheby’s history a year ago, and a very competitive climate for high-end consignments. Overall, I remain confident in the marketplace.”

Key Stats (on next page)…