Sotheby's (BID) Misses on 2Q Earnings and Revenue, Announces Share Buyback
Shares of Sotheby's (BID) were trading down -1.73 or -4.27 percent to $38.78 per share in Friday's premarket after the company reported earnings for the company's 2015 second quarter early this morning. The company reported lower than expected earnings and revenue for the quarter. Sotheby's stock closed at $40.51 per share, down -1.44 or -3.43 percent in Thursday's regular trading session.
For the company's second quarter, Sotheby's reported net income of $67.6 million or $0.96 per share compared to net income of $77.6 million or $1.11 per share in the same period one year ago. On an adjusted basis, net income came to $73.1 million with adjusted diluted earnings per share of $1.04 versus $87.8 million or $1.26 in the second quarter of 2014. Revenue for the quarter was $332 million, down one percent from last year.
For the first half of the year, Sotheby's adjusted net income was $80.5 million or $1.15 per adjusted diluted share compared to $84.9 million or $1.20 per share one year ago. Revenue for the first half came to $487.7 million. Analysts were expecting the company to report earnings per share of $1.24 on revenue of $340 million for the second quarter.
President and Chief Executive Officer Tad Smith stated in the company's press release that, "Our Company delivered strong sales to date in 2015 but some anomalies in the second quarter depressed the bottom line. We are moving forward with our strategic plan and look forward to reporting its results in due course."
Sotheby's reported adjusted operating income of $125.5 million in the quarter, down -$23.5 million or 16 percent. For the first half operating income came to $147.7, down -$11.1 million or -7 percent. According to the company, the decline was in part due to a loss incurred on a painting acquired earlier this year which was auctioned in the second quarter, and a calendar shift of the summer evening sale of Contemporary Art in London.
Sotheby's shares are already selling off in the premarket, down almost five percent so far. The stock will open under $39 per share, a level not seen since October of last year. Nevertheless, the company announced it would double its share repurchase program to $250 million indicating it would be purchasing $125 million in the near term. In addition, Sotheby's declared a $0.10 per share quarterly dividend payable September 15th to shareholders of record August 28th.
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Bruno Vinciguerra, with the company since 2008 will leave the firm on August 31st.
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