Sotheby's had a series of highly profitable auctions this quarter but the increased expenses are killing their ability to grow their bottom line. Earnings of $1.11 were shy of estimates by 20 cents a share and short of the $1.33 it earned in the same period last year. Revenue of $336 million was below estimates but was $30 million higher than sales in the prior year's quarter. Hong Kong and London markets were the two big reasons behind the increased revenue. Even with this push, the 22% increase in expenses washed away any growth in net income. Sotheby's has dropped 32% since the beginning of the year. Whalen MacHale reports for TheStreet from New York.
Stock quotes in this video: