Sotheby's (BID) Shares Get Put Up for Auction Following Q4 Results
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Sotheby's (NYSE: BID) shares are trading down roughly 7 percent following fourth-quarter earnings and sales misses from the company.
Revenue at the art and collectible auctioneer fell from $317.96 million during last year's fourth quarter to $284.25 million. Sales were below the Street’s consensus of $298.39 million.
Total expenses rose $4.5 million year over year to $166.9 million.
Operating income totaled $117.34 million, down from $155.52 million in the year-ago quarter. Net income came to $71.48 million, substantially below the $96.25 million reported last year. Earnings per share for the quarter came to $1.04 on a diluted basis, much lower than the $1.38 experienced in the fourth quarter of 2010. This was also dramatically below the Street’s consensus of $1.25.
Management attributed the decrease in profit to a decline in auction and related revenue, from $310.5 million to $274.9 million.
So far in 2012, the sale of Sotheby's Old Masters Paintings in New York totaled $62.1 million, above the pre-sale low estimate of $60.7 million. Sotheby's Impressionist and Modern Art sales in London earlier this month totaled $152.9 million, above the pre-sale low estimate of $150.3 million. Also in London earlier this month, Sotheby's Contemporary Art sales brought $103.7 million, above the pre-sale high estimate of $103.0 million.
"Sotheby's had great success last year, handling masterpieces, innovating in new markets and building trust based relationships with clients globally and our 2011 financial results reflected those efforts. They are near the best we have ever delivered," said Bill Ruprecht, President and Chief Executive Officer.
Mr. Ruprecht continued: "Consolidated sales in 2011 were an excellent $5.8 billion, as healthy bidding continued around the world for great works of art. Private sales, an increasingly important part of Sotheby's business, totaled a record $814.6 million, a 65% increase."
Revenue at the art and collectible auctioneer fell from $317.96 million during last year's fourth quarter to $284.25 million. Sales were below the Street’s consensus of $298.39 million.
Total expenses rose $4.5 million year over year to $166.9 million.
Operating income totaled $117.34 million, down from $155.52 million in the year-ago quarter. Net income came to $71.48 million, substantially below the $96.25 million reported last year. Earnings per share for the quarter came to $1.04 on a diluted basis, much lower than the $1.38 experienced in the fourth quarter of 2010. This was also dramatically below the Street’s consensus of $1.25.
Management attributed the decrease in profit to a decline in auction and related revenue, from $310.5 million to $274.9 million.
So far in 2012, the sale of Sotheby's Old Masters Paintings in New York totaled $62.1 million, above the pre-sale low estimate of $60.7 million. Sotheby's Impressionist and Modern Art sales in London earlier this month totaled $152.9 million, above the pre-sale low estimate of $150.3 million. Also in London earlier this month, Sotheby's Contemporary Art sales brought $103.7 million, above the pre-sale high estimate of $103.0 million.
"Sotheby's had great success last year, handling masterpieces, innovating in new markets and building trust based relationships with clients globally and our 2011 financial results reflected those efforts. They are near the best we have ever delivered," said Bill Ruprecht, President and Chief Executive Officer.
Mr. Ruprecht continued: "Consolidated sales in 2011 were an excellent $5.8 billion, as healthy bidding continued around the world for great works of art. Private sales, an increasingly important part of Sotheby's business, totaled a record $814.6 million, a 65% increase."
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