(BID) - Topped analysts' earnings expectations for six consecutive quarters by an average margin of 19.5%

Sotheby's (BID), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for the past six quarters by an average margin of 19.5%. The company recently reported record revenues and income from continuing operations in the second quarter. Consensus estimates for both this year and next year have been on the rise. Earnings per share are projected to grow 18% over the next 3-5 years. BID has a current dividend yield of 1.3%. Full Analysis Sotheby's, together with its subsidiaries, operates as an auctioneer of authenticated fine art, decorative arts, jewelry and collectibles. The company's finance business segment offers art-related finance to art collectors and dealers, and is involved in licensing activities. BID topped analysts' earnings expectations for six consecutive quarters by an average margin of 19.5%. Five out of the past six quarters produced double-digit earnings surprises. Income from continuing operations of $72.4 million, or $1.17 per share, for the second quarter marked an historic high for the company. It also beat the consensus earnings estimate by an impressive 19.4%. In the prior-year period, income from continuing operations amounted to $42.5 million, or 67 cents per share. Revenues of $248.3 million for the quarter also were a record and represented a 39.2% improvement when compared to the $178.4 million achieved in the second quarter of 2005. For the first six months of the year, another record was set with revenues of $344.3 million—a 36.4% jump when compared to revenues of $252.5 million for the first six months of 2005. Income from continuing operations soared 109.2% to $68.4 million. The Board of Directors recently declared a quarterly dividend of 10 cents per share. The company has a current dividend yield of 1.3%. The consensus earnings estimate for this year calls for profits of $1.73 per share. When compared to consensus estimate of 60 days earlier, it has jumped 15.3%. Profit forecasts for next year have risen 12.4% to $1.82. Four analysts upped their estimates for this year while three followed suit for next year. Earnings per share are projected to grow 18% over the next 3-5 years. The industry is expected to grow at a 17% clip. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home