Stocks in Motion: Sotheby's
Updated from 1:09 p.m. EDT
Shares of Sotheby's Holdings (BID) were among the NYSE's winners Monday after the company posted strong second-quarter earnings.
Excluding items, the auction company earned 66 cents a share on sales of $169.5 million. Analysts polled by Thomson First Call had expected it to earn 47 cents a share on sales of $134.3 million. Higher auction commissions and strong spring sales around the world aided second-quarter results. Looking ahead, Sotheby's expects the recovery in the international art market to continue. Shares of Sotheby's traded up $1.79, or 12.6%, to $15.99.
Knight Trading (NITE) rose after it agreed to sell its derivative business to Citigroup (C) for about $225 million in cash. Knight said that it sold the derivatives business so that it could concentrate on its equity markets and asset-management businesses. The transaction is scheduled to close in the fourth quarter. Knight will use the cash proceeds for general corporate purposes, including share repurchases, reinvestments and acquisitions. Shares of Knight Trading traded up 47 cents, or 5.7%, to $8.76.Shares of CP Ships (TEU) fell after the company said it would restate earnings results from 2002, 2003 and part of 2004. The container ship company said the bulk of the restatement would be to its 2003 results. Income will be reduced by $22 million to $27 million, which is in addition to the $8 million restatement the company announced in May. Income for 2002 will be reduced by about $7 million. First-quarter results for 2004 will be reduced by $6 million, instead of the $8 million it originally estimated. CP Ships said that a new accounting system, implemented in January, revealed the accounting deficiencies and processes. Shares of CP Ships traded down $3.70, or 22.4%, to $12.85. Sizeler Property Investors (SIZ) fell after it cut its quarterly dividend. The real estate investment trust reduced the dividend to 10 cents from 23 cents, citing a wish to generate more money for future real estate investments. What's more, it may use some of the withheld cash to pay down additional debt. Shares of Sizeler Property traded down $1.45, or 15.4%, to $7.95.
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