Post Earnings Coverage as Sotheby’s Q4 Adjusted EPS Rose 13% Y-o-Y; Beat Market Estimates

Upcoming AWS Coverage on Five Below Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 15, 2017 / Active Wall St. announces its post-earnings coverage on Sotheby’s (NYSE: BID). The company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on February 27, 2017. The New York-based Company’s quarterly adjusted diluted EPS increased 13% y-o-y, beating market consensus estimates. Register with us now for your free membership at:

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One of Sotheby’s competitors within the Specialty Retail, Other space, Five Below, Inc. (NASDAQ: FIVE), announced on March 08, 2017,that its financial results for Q4 and full year of fiscal 2016 will be released after market close on Wednesday, March 22, 2017. The company will host a conference call at 4:30 p.m. ET to discuss the financial results. AWS will be initiating a research report on Five Below in the coming days.

Today, AWS is promoting its earnings coverage on BID; touching on FIVE. Get our free coverage by signing up to:

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Earnings Reviewed

In Q4 FY16, Sotheby’s reported total revenues of $308.69 million compared to $335.82 million recorded at the end of Q4 FY15. Meanwhile, total revenue numbers for Q4 FY16 beat market consensus estimates of $277.28 million.

The auction house’s net income attributable to Sotheby’s came in at $65.50 million, or $1.20 per diluted share, in Q4 FY16 compared to net loss attributable to Sotheby’s of $11.15 million, or $0.17 loss per diluted share, in Q4 FY15. The Company’s adjusted net income during Q4 FY16 was $73.76 million, or $1.35 per diluted share, versus $80.59 million, or $1.19 per diluted share, in Q4 FY15. The Company attributes the increase in diluted adjusted EPS to share purchase in the reported financial year. Furthermore, Wall Street had expected the Company to report adjusted net income of $1.17 per diluted share.

For FY16, Sotheby’s total revenues came in at $805.38 million compared to $961.49 million in the previous year. The Company reported net income attributable to Sotheby’s of $74.11 million, or $1.27 per diluted share, in FY16 versus $43.73 million, or $0.63 per diluted share, in FY15. The Company’s adjusted net income for FY16 stood at $99.62 million, or $1.71 per diluted share, compared to $143,131 million, or $2.07 per diluted share, in FY15.

Operational Metrics

Sotheby’s agency commissions and fees for the reported quarter totaled $265.72 million compared to $284.44 million in Q4 FY15. The Company’s inventory sales were down to $26.43 million in Q4 FY16 from $35.49 million in Q4 FY15. Additionally, Finance’s contribution to the Company’s total revenues during Q4 FY16 was $12.07 million versus $12.90 million in Q4 FY15.

During Q4 FY16, Sotheby’s general and administrative expenses were $45.42 million versus $41.56 million in the prior year’s same quarter. Total expenses for the reported quarter totaled $217.29 million versus $247.26 million in Q4 FY15. The Company’s operating income for Q4 FY16 increased to $91.40 million in Q4 FY16 from $88.57 million in Q4 FY15. Additionally, the Company income before taxes stood at $86.23 million in Q4 FY16 compared to $83.91 million in last year’s comparable quarter.

Cash Flow & Balance Sheet

During FY16, net cash provided by operating activities increased to $158.37 million from $155.06 million in the prior year’s same quarter. At the close of books on December 31, 2016, Sotheby’s had $496.03 million in cash and cash equivalents versus $848.70 million at the close of books on December 31, 2015. Moreover, the Company’s long-term debt during the reported year stood at $598.94 million as on December 31, 2016, compared to $604.96 million as on December 31, 2015.

Share Repurchase

On October 03, 2016, the Company entered into an agreement with funds managed by Marcato Capital Management L.P., and repurchased 2.05 million shares of its common stock for an aggregate purchase price of $73.8 million, at an average price of $36.00 per share.

Stock Performance

On Tuesday, March 14, 2017, the stock closed the trading session at $46.51, marginally down 0.79% from its previous closing price of $46.88. A total volume of 422.99 thousand shares have exchanged hands. Sotheby’s stock price surged 13.30% in the last three months, 21.88% in the past six months, and 77.05% in the previous twelve months. Furthermore, on a year to date basis, the stock gained 16.68%. Shares of the company have a PE ratio of 35.29 and have a market capitalization of $2.46 billion.

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