Sotheby's Q1 Loss Narrows - Update

(RTTNews) - Auction house Sotheby's (BID), Wednesday reported a loss for the first-quarter that narrowed from a year ago, as auction revenues surged amidst a strong art market. Both earnings and revenues for the quarter trumped Wall Street estimates.

New York-based Sotheby's first-quarter loss narrowed to $6.11 million or $0.09 per share from a loss of $22.34 million or $0.33 per share last year. On average, five analysts polled by Thomson Reuters expected a loss of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

Sotheby's, which auctions fine arts and other valuable collectibles, usually posts a small loss or profit in the first and third quarters of fiscal year, due to the seasonal nature of the art auction market. The majority of auctions are typically held in the second and fourth quarters.

Total revenues for the quarter rose to $156.81 million from $101.74 million. Analysts expected revenue of $129.39 million for the quarter.

Net auction sales surged 40 percent resulting in a 33 percent increase in auction commission revenue. The company said its results were fueled by continued strength in the global art market and a record February sales series in London.

Commenting on the results, Chief Executive Bill Ruprecht said, "They demonstrate that the art market remains robust, clients from all corners of the world aspire to engage and transact with Sotheby's because they are benefiting from our unrivaled expertise and market knowledge, and we are executing well on our promise of cost control in 2014."

BID is currently trading at $42.26, down $1.34 or 3.07%, on a volume of 0.7 million shares, on the NYSE.