Master Ramses Formerly NIA Appraised at $37,000Sotheby's the world's largest publicly traded auction house, posted a higher-than-expected fourth-quarter profit, helped by a higher auction commission margin and cost cuts, sending its shares up 10 percent according to Reuters..

Last month, Sotheby's beat expectations at its contemporary art sale underlining the strength of the market a week after a Giacometti statue broke auction records by selling for $104.3 million.

For the fourth quarter ended December 31, the auctioneer swung to a net income of $73.6 million, or $1.09 a share, compared with a net loss of $9.3 million, or 14 cents a share, a year earlier.

Revenue rose 31 percent to $ 218.3 million according to Reuters.

Analysts on average were looking for a profit of 67 cents a share on revenue of $201.1 million, according to Reuters.

The auctioneer, which competes with privately held Christie's, said total expenses fell 28 percent to $119.4 million and its auction commission margin rose to 20.4 percent from 16.0 percent.

"Worldwide sales last autumn were a significant improvement over their spring equivalents," Chief Executive Bill Ruprecht said in a statement.

Sell through rates improved across the board and November sales of Impressionist, Modern and Contemporary Art both exceeded their pre-sale high estimates.

"We are well poised to capitalize on an economic upturn and art market rebound as it occurs," Ruprecht said.

Shares of New York-based Sotheby's, which have risen 33 percent since it reported third-quarter results and flagged an art market recovery, were trading at $26.60 before the bell, up from Friday's close of $24.30 on the New York Stock Exchange.