Ferrari (NYSE:RACE) today announced its consolidated preliminary results for the second quarter and six months ended June 30, 2021. Second quarter results can be summarized as follows:
- Total shipments of 2,685 units, almost doubled Vs prior year and up 0.5% Vs Q-2 2019
- Net revenues of Euro 1,035 million, nearly doubled Vs prior year and up 5.2% Vs Q2 2019
- EBITDA of Euro 386 million, 3X’d Vs prior year and up 23.0% Vs Q2 2019. EBITDA margin of 37.4% in Q2 2021.
- EBIT of Euro 274 million versus Euro 23 million of prior year and up 14.8% Vs Q2 2019. EBIT margin of 26.5% in Q2 2021.
- Net profit of Euro 206 million and diluted EPS at Euro 1.11
- Sound industrial free cash flow generation of Euro 113 million and guidance for the year improved to approx. Euro 450 million (from approx. Euro 350 million)
Next Capital Markets Day is planned for June 16, 2022 in Maranello.
Commenting on the results, Chairman and Acting CEO John Elkann said: “This excellent second quarter confirms the strength of Ferrari and of its unique business model. With each Ferrari we unveil we are setting new benchmarks for innovation, beauty and distinctiveness which is the only true luxury. As we move towards our 75th anniversary next year, our opportunities have never been wider and greater.”
Ferrari is The Aristocrat of the automotive sector.
Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.
Ferrari closed Friday at 218.29 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.
Key technical indicators are Bullish mid to long term. The candlestick pattern indicates the confirmation of the break out at 196.01 on 3 November and confirmed.
The Key support is at 217.14 and the resistance is light through 220.77. The 28 July Bullish Engulfing candlestick is confirming a return to the Very Bullish trend.
All of our Key technical indicators have turned Very Bullish across the board.
Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.
UBS is now calling the stock at 365. I have not seen any other Street downgrades.
Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.
Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.
I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.
Ferrari has an average rating of Buy and a consensus target price at 231.99.
The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I am calling it 375 long term, the Top on the Street, and adjusting it to 250/share short term.
A number of large investors have recently bought shares of RACE, and there have been very few instances of insider selling over the past yr that we have seen. And Ferrari continues to buy back its stock in here.
The stock is considered defensive in the sector.
Have a prosperous week, Keep the Faith!