Sotheby’s Earnings: Misses Expectations as Profit Falls

Sotheby’s (NYSE:BID) reported its results for the fourth 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 Fourth Quarter

Results: Net income for Sotheby’s fell to $71.5 million ($1.04 per share) vs. $96.2 million ($1.40 per share) a year earlier. This is a decline of 25.7% from the year-earlier quarter.

Revenue: Fell 10.6% to $284.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sotheby’s fell short of the mean analyst estimate of $1.23 per share. It fell short of the average revenue estimate of $298.4 million.

Quoting Management: “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.

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by 5 cents, and in the second quarter, it was ahead by 26 cents.

Looking Forward: Expectations for the company’s performance in the upcoming quarter are lower than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has fallen from a profit of 3 cents per share to a loss of 4 cents. At $2.69 per share, the average estimate for the fiscal year has fallen from $2.88 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com