Sothebys Second Quarter Earnings PREVIEW

Sothebys (NYSE:BID) will unveil its latest earnings on Friday, August 3, 2012. Sothebys is an auctioneer of authenticated fine art, antiques and decorative art, jewelry, and collectibles.

Sothebys Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.53 per share, a decline of 16.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.61. Between one and three months ago, the average estimate moved down. It has risen from $1.44 during the last month. For the year, analysts are projecting net income of $2.28 per share, a decline of 1.7% 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 a loss of 16 cents per share versus a mean estimate of net loss of 16 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 19 cents.

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A Look Back: In the first quarter, the company swung to a loss of $10.7 million (16 cents a share) from a profit of $2.4 million (3 cents) a year earlier, meeting analyst expectations. Revenue fell 12.2% to $105 million from $119.6 million.

Stock Price Performance: Between May 3, 2012 and July 30, 2012, the stock price fell $7.77 (-20.9%), from $37.17 to $29.40. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 14.3% (+$4.36) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 20.8% (-$7.69) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.0 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 10.6% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Wall St. Revenue Expectations: Analysts are projecting a decline of 10.8% in revenue from the year-earlier quarter to $330 million.

Analyst Ratings: There are mostly holds on the stock with three of five analysts surveyed giving that rating.

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

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