Sotheby’s Earnings: Revenue Grows After Four Straight Declines

Sotheby’s (NYSE:BID) reported its results for the third 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

Results: Loss widened to $32.6 million (48 cents per diluted share) from $29.7 million (loss of 44 cents per share) in the same quarter a year earlier.

Revenue: Rose 17.6% to $68.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sotheby’s fell short of the mean analyst estimate of a loss of 47 cents per share. It fell short of the average revenue estimate of $94.2 million.

Quoting Management: “Sotheby’s continues to see considerable demand for precious works of art,” said Bill Ruprecht, President and Chief Executive Officer. “Our sales in London last month brought record results and starting this evening and in the coming weeks, we will offer for sale the finest collection of paintings, drawings, sculpture and jewels available in the world — including a number of rare works that we are very excited about. The art market remains quite robust, especially at the high end.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the third quarter of the last fiscal year, which saw a 20.3% decrease.

For two quarters in a row, the company has come in under analyst estimates. In the second quarter, it missed expectations by 25 cents with net income of $1.24 versus a mean estimate of net income of $1.49 per share.

The company reported a net loss last quarter, after reporting a profit in the quarter prior. The company booked a profit of $10.7 million, or 16 cents per share, in the first quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.16 per share, a drop from $1.25. For the fiscal year, the average estimate has moved down from $1.98 a share to $1.79 over the last ninety days.

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

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