Ferrari’s Supercars Driving Record Breaking Earnings

Ferrari’s Supercars Driving Record Breaking Earnings

Ferrari’s Supercars Driving Record Breaking Earnings


Iconic Italian automaker Ferrari, NV (NYSE:RACE) posted better-than-expected Quarterly numbers last Tuesday, helped by strong demand for its Supercars from Europe and China and margins strengthened by Special Edition and Tailor Made examples.

The business that was spun off from Fiat Chrysler Automobiles (NYSE:FCAU), confirmed its full-year revenue guidance, adding it was on track for another record.

President Sergio Marchionne stated the full-year projections were “the minimum points” anticipated and predicted a “Phenomenal 2016”.

I expect Ferrari to raise its guidance prior to the end of this year.

Its New York-listed shares increased nearly 3% to touch their greatest levels considering since January however were still short of its IPO cost of 52, and technically there is no resistance on the Northside and strong support on the Southside.

Supercar deliveries in the Quarter increased 8% to 2,214 cars, assisted by strong sales of Ferrari’s 8-cylinder designs, specifically the new 488 GTB and 488 Spider.

Sales of 12-cylinder cars fell with the end of its limited edition $1.1-M LaFerrari hybrid offer, though this was partially balanced out by the intro of the newest limited-edition F12tdf Supercar.

Mr. Marchionne has looked for to place Ferrari as a high-end goods company to win the trading multiples of companies like Hermes and Prada and plans to expand the brand beyond vehicles.

More information of that plan will be unveiled in Y 2017 I have been told.

So, until then, Mr. Marchionne promised to improve earnings by presenting more limited-edition vehicles like the convertible variation of the LaFerrari dubbed Aperta to be revealed at the Paris car show in October, and more customized versions for it high net worth clienti.

Ferrari anticipates delivering around 8,000 automobiles this year, part of Mr. Marchionne’s goal to gradually raise volumes to 9,000 by Y 2019 without compromising brand exclusivity.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 46.88 5 August 2016 0.22 47 47.09 46.8 316,500
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.27) Very Bullish (0.56) Neutral (0.02) Neutral (0.22)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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