Sotheby’s Earnings Cheat Sheet: Loss Widens

Sotheby’s (NYSE:BID) reported its results for the second 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 Second Quarter

Results: Reported a loss of $29.7 million (44 cents per diluted share) in the quarter. Sotheby’s had a loss of $19.4 million or 29 cents a share a year earlier.

Revenue: Fell 20% to $58.2 million.

Actual vs. Wall St. Expectations: BID fell short of the mean analyst estimate of a loss of 35 cents per share. It fell short of the average revenue estimate of $77 million.

Quoting Management: “Sotheby’s continues to enjoy fierce bidding for great works of art,” said Bill Ruprecht, President and Chief Executive Officer. “Consolidated sales1 for the first nine months are up 36% to $3.8 billion and against a backdrop of global economic volatility, our Impressionist sales last week brought $229.7 million. There is vibrant demand for works of art which are fresh to the marketplace and appropriately priced.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.83 versus a mean estimate of net income of $1.57 per share.

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 third quarter is $1.47 per share, a drop from $1.53. For the fiscal year, the average estimate has moved up from $2.89 a share to $2.99 over the last ninety days.

Competitors to Watch: Jones Lang LaSalle (NYSE:JLL), CB Richard Ellis (NYSE:CBG), Duke Realty (NYSE:DRE), SL Green (NYSE:SLG), Vornado (NYSE:VNO) and Boston Properties (NYSE:BXP).

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