Decline In The Art Market Fails to Beat Sotheby’s Net Income – Longs Positions Favored
Sotheby’s reported better-than-expected earnings and revenue for the second quarter of 2016 before the market open on Monday. The New York City-based auction company generated $298.67 in revenue, beating estimates of $291.22 million but falling 10% compared to the revenue of $332.01 million one year ago due to lower sales volumes associated with the decline in the art market.
However, net income jumped 31.7% to $88.9 million, or $1.52 per share, topping estimates of $1.05 per share thanks to the company’s lower cost structure, an increased auction commission margin, lower variable compensation rates and a favorable effective income tax rate.
Buy Stop at 36.50, Take profit at 39.00, Stop loss at 35.00