Sotheby's Earnings Hit By Management Change and Investor Activism

Sotheby's Q4 earnings picture on Monday could have been prettier as the auction house missed analyst estimates. Sotheby's reported net income of $78.4 million or $1.12 per share, down on last year's numbers. Revenue rose 3.5% to $351.2 million beating estimates, but higher expenses have put the stock under pressure. The art dealer suffered a dent in profits following its management upheaval, suffering a $7.5 miillion charge following the departure of the CEO Bill Ruprecht last year. Shareholder activism has also hit the bottom line. Just last week New York Hedge fund Marcato Capital Management demanded the resignation of the Sotheby's CFO and called for a $500 million stock buyback. Shares of Sotheby's have dropped around 6.5% over the past year.