Sotheby’s Quarterly Earnings Sneak Peek

Sotheby’s (NASDAQ:BID) will unveil its latest earnings on Monday, August 1, 2011. Sothebys is an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles.¬†HOUSE OF THE WEEK: Spectacular Private Palm Beach Oceanfront Condo>>

Sotheby’s Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.57 per share, a rise of 24.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.55. Between one and three months ago, the average estimate moved down, but has risen from $1.52 during the last month. For the year, analysts are projecting profit of $2.84 per share, a rise of 21.4% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported net income of 4 cents per share versus a mean estimate of profit of 4 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $330.1 million in revenue this quarter, a rise of 17.3% from the year ago quarter. Analysts are forecasting total revenue of $863.8 million for the year, a rise of 11.6% from last year’s revenue of $774.3 million.

Analyst Ratings: Analysts are bullish on this stock with four analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 50.7%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 74.3% from the year earlier quarter.

The company’s gross margin shrank by 3.9 percentage points in the in the first quarter. Revenue rose 17.4% while cost of sales rose 71.6% to $14.9 million from a year earlier.

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).

Stock Price Performance: During April 29, 2011 to July 26, 2011, the stock price had fallen $5.77 (-11.4%) from $50.46 to $44.69. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 18.5% (+$7.47) over that span. It saw one of its worst periods between January 18, 2011 and January 25, 2011 when shares fell for six-straight days, falling 13.8% (-$6.29) over that span. Shares are down 21 cents (-0.5%) year to date.

(Source: Xignite Financials)

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