Sotheby's Plunges After Second-Quarter Results Miss Estimates

  • Higher expenses in areas such as technology curbed profit
  • CEO Tad Smith says art market is healthy but not frothy

A Sotheby's auction sale is held in Hong Kong on October 7, 2015.

Photographer: Philippe Lopez/AFP via Getty Images
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Sotheby’s plunged the most in nine months after second-quarter earnings missed estimates due to higher expenses.

The New York-based auction house of fine art and collectibles reported a 14 percent decline in profit for the period ended June 30, according to a statementBloomberg Terminal Thursday. Net income slid to $76.9 million from a year earlier even as the company sold the most expensive artwork of 2017 in May -- a Jean-Michel Basquiat painting for $110.5 million.