Photo: AP/John Marshall Mantel
Auction house Sotheby’s missed earnings expectations when it posted a loss of $29.7 million, or -$0.44 a share, after the bell today. Consensus was for a loss of $0.35 a share.Total revenue declined 4% to $52.9 million, as single-owner sales declined by $13.8 million.
The third quarter typically represents only 7 to 10% of annual sales, so losses for the period are generally priced in.
“Sotheby’s continues to enjoy fierce bidding for great works of art,” CEO Bill Ruprecht said. “Consolidated sales for the first nine months are up 36% to $3.8 billion and against a backdrop of global economic volatility, our Impressionist sales last week brought $229.7 million. There is vibrant demand for works of art which are fresh to the marketplace and appropriately priced.”
Fourth quarter slated sales include a contemporary art series estimated to total between $249 and $351 million and a diamond that may fetch more than $10 million. Take a read:
The November 15th sale of Magnificent Jewels in Geneva will be led by one of the most impressive diamonds to come to auction in recent years, the Sun-Drop Diamond, a 110.03 carat Fancy Vivid Yellow diamond that is the largest known pear-shaped fancy vivid yellow diamond in the world. Only three diamonds over 100 carats have ever been sold at auction and all three sales were held by Sotheby’s Geneva. The diamond has a purity of VVS1 and has a pre-sale estimate of $11/15 million. The total Magnificent Jewels sale has a pre-sale estimate of $72/103 million.