A number of stronger than expected sales has helped auction house Sotheby’s (NYSE:BID) deliver above-forecast fourth-quarter 2016 results.
For the fourth quarter to December, the New York-based company reported net income of US$65.5mln, or $1.20 per diluted share, compared to a net loss of US$11.2mln and diluted loss per share of $0.17 at the same stage in the previous year – which had been impacted by a US$65.7mln non-cash income tax charge related to the planned repatriation of foreign earnings.
Analysts had forecast 2016 fourth-quarter 2016 earnings of US$1.17 per share.
For the full-year , Sotheby’s posted net income of US$74.1mln, or $1.27 per diluted share, a 69% increase from the $43.7mln, or US$0.63 per diluted share reported in 2015
Tad Smith, Sotheby’s CEO, said: “”Our fourth quarter 2016 results came in better than expected largely due to a number of strong fourth quarter sales”.
He added: “These results reflect growing confidence in the market as collectors responded enthusiastically to the great collections and works we secured for sale.”
“Even more importantly, the quarter demonstrated that when the market stabilizes, let alone when it returns to its secular growth trajectory, our company is poised to capitalize on the upturn and do very well for our shareholders.”
Last month, at its annual Americana Week sale, Sotheby’s said it generated US$19.4mln in sales, the most since 2007 when it set a record of US$29.1mln.
Story by ProactiveInvestors