Improving Art Market Lifts Sotheby?s, But Shares Fall

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Sotheby’s (BID) posted better than expected earnings and said the global art market is improving, but shares fell 1.9% after the market closed Monday.

Sotheby’s posted earnings of $1.38 per share, versus expectations for $1.32; revenue came in at $318 million, better than consensus expectations for $298 million. Sotheby’s said that it sold more than twice as many works of art for $1 million or more in 2010 than in the previous year. But the company actually makes lower commissions on more expensive works, so its auction commission margin fell to 18% in the fourth quarter from 20.4% the previous year.

“The positive momentum continues in 2011,” said CEO Bill Ruprecht. “Overall, aggregate auction sales through the first two months of 2011 solidly improved from the first two months of 2010.”



Original Article Source by Barrons.com