Sothebys (BID) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $65.50 million, or $ 1.20 a share in the quarter, against a net loss of $11.15 million, or $0.17 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $73.76 million, or $1.35 a share compared with $80.59 million or $1.19 a share, a year ago. Revenue during the quarter dropped 8.08 percent to $308.69 million from $335.82 million in the previous year period. Gross margin for the quarter expanded 301 basis points over the previous year period to 78.55 percent. Total expenses were 70.39 percent of quarterly revenues, down from 73.63 percent for the same period last year. This has led to an improvement of 323 basis points in operating margin to 29.61 percent.
Operating income for the quarter was $91.40 million, compared with $88.57 million in the previous year period.
"Our fourth quarter 2016 results came in better than expected largely due to a number of strong fourth quarter sales," said Tad Smith, Sotheby chief executive officer. "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."
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