The 10-second takeaway
For the quarter ended March 31 (Q1), Sotheby's beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Sotheby's booked revenue of $105.0 million. The five analysts polled by S&P Capital IQ looked for a top line of $94.9 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $119.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.16. The four earnings estimates compiled by S&P Capital IQ predicted -$0.15 per share. GAAP EPS were -$0.16 for Q1 versus $0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.0%, 1,180 basis points worse than the prior-year quarter. Operating margin was -8.3%, 1,750 basis points worse than the prior-year quarter. Net margin was -10.2%, 1,220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $338.7 million. On the bottom line, the average EPS estimate is $1.62.
Next year's average estimate for revenue is $833.2 million. The average EPS estimate is $2.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 534 members out of 573 rating the stock outperform, and 39 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give Sotheby's a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sotheby's is outperform, with an average price target of $42.58.
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Seth Jayson owned shares of the following at the time of publication: Sotheby's. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Sotheby's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.