Sotheby's Profit, Revenue Fall Short As Company Makes Loss On a Painting

By MarketWatch Pulse

Auction house Sotheby's said Friday it had net income of $67.6 million, or 96 cents a share, in the second quarter, down from $77.6 million, or $1.11 a share, in the year-earlier period. Adjusted per-share earnings came to $1.04, below the FactSet consensus of $1.26. Revenue came to $332 million, down 1% from a year ago, and below the FactSet consensus of $342 million. The decline in profit and sales was due to a calendar shift of the summer evening sale of contemporary art in London, and a loss on a painting acquired earlier this year and sold at auction in the second quarter, the company said in a statement. "Our Company delivered strong sales to date in 2015 but some anomalies in the second quarter depressed the bottom line," Chief Executive Tad Smith said in the statement. "We are moving forward with our strategic plan and look forward to reporting its results in due course." Shares were not yet active in premarket trade, but are down 6% in the year so far, while the S&P 500 has gained 1.2%.

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