Sotheby’s (BID) missed earnings estimates for the third quarter as auction sales fell off. Shares dipped 0.8% after hours.
Sotheby’s posteda 44-cent loss, against expectations for a 35-cent loss. Auction-related revenues fell 4% to $52.9 million, as single-owner sales fell by $13.8 million in the quarter.
“Net loss for the third quarter is $29.7 million as compared to a net loss of $19.4 million in the prior period. The increased loss is partially attributable to higher general and administrative expenses and lower auction commission revenues.”
The company noted that it tends to report losses in the third quarter.
“Because of the seasonal nature of the art auction market, Auction Sales in the third quarter have historically represented only approximately 7%-10% of annual Auction Sales, and the third quarter has historically been a loss period for the Company. As a result, third quarter results are typically not indicative of expected full year results. Management believes that investors should focus on results for six and twelve month periods, which better reflect the auction market business cycle.”
The company also raised its quarterly dividend to 8 cents from 5 cents.
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