NEW YORK (TheStreet) --Sotheby's (BID) - Get Sotheby's Report stock is down by 4.42% to $38.72 in mid-morning trading on Friday, after the company reported lower than expected earnings results for the second quarter of 2015.
The company reported earnings of $1.04 per diluted share on revenue of $332 million for the three months ended June 2015.
Sotheby's was expected to post earnings of $1.24 per share on revenue $342 million, according to analysts surveyed by Thomson Reuters.
The company lost $12.37 million in revenue due to unfavorable currency exchange rates.
Revenue, which fell 1% year over year, was also affected by the Contemporary Art summer evening sale in London being moved to the third quarter of 2015.
Additionally, Sotheby's board has approved a $125 million addition to its share repurchasing program.
Separately, TheStreet Ratings team rates SOTHEBY'S as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOTHEBY'S (BID) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow."
You can view the full analysis from the report here: BID Ratings Report