Sotheby’s Earnings: Reports Loss, Revenues Drop, Stock Still Pops

Sotheby’s (NYSE:BID) reported its results for the first quarter. Sothebys is an auctioneer of authenticated fine art, antiques and decorative art, jewelry, and collectibles.

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Sotheby’s Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $10.7 million (16 cents per diluted share) in the quarter. Sotheby’s had a net income of $2.4 million or 3 cents per share in the year-earlier quarter.

Revenue: Fell 12.2% to $105 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sotheby’s fell in line with the mean analyst estimate of a loss of 16 cents per share. It beat the average revenue estimate of $94.2 million.

Quoting Management: “As the excellent results of our May auctions make abundantly clear, the first quarter results are in no way reflective of a slowdown in demand for works of art around the world,” said Bill Ruprecht, President and Chief Executive Officer. “Our first quarter results are largely comparable year on year were it not for the exceptional single owner sale Looking Closely in the prior year.

Key Stats:

Revenue has been on the decline for three quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 10.6% to $284.2 million while the figure fell 20.3% in the third quarter of the last fiscal year from the year earlier.

The company met estimates last quarter after falling short of forecasts in the previous quarter with net income of $1.04 versus a mean estimate of net income of $1.23 per share.

Last quarter, the company reported a net loss that marked a turn from the previous quarter’s profit. The company booked a profit of $29.7 million, or 44 cents per share, in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from $1.85 a share to $1.61 over the last ninety days. For the fiscal year, the average estimate has moved down from $2.78 a share to $2.48 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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