Ferrari (NYSE:RACE) Minting Money for Stakeholders

Ferrari (NYSE:RACE) Minting Money for Stakeholders

Ferrari (NYSE:RACE) Minting Money for Stakeholders

$RACE

Ever since its IPO spin off from giant automaker Fiat-Chrysler (NYSE:FCAU) in October 2015, Ferrari (NYSE:RACE) has printed money for its stakeholders.

The company set sales records in Y 2016 and continues to exceed expectations.

According to the data Ferrari’s Q-3 earnings for Y 2017 are up 13% to $310-M. Ferrari says that these strong earnings figures were helped by robust sales of V12 models like the GTC4Lusso, LaFerrari and LaFerrari Aperta.

Based on these continuing demand numbers, Ferrari does not expect sales to slow down any time soon.

Ferrari estimates that its end of year sales will be over EUR 1-B, up from a previous forecast of EUR 950-M, which I believe is on conservative side.

Ferrari CEO Sergio Marchionne has targeted EUR 1-B in operating profit since taking the driver’s seat and wheel of the Italian luxury Supercar maker in Y 2014.

CEO Marchionne hit this target before his initial goal of Y 2019, which will pave the way for a new 5 year business plan before he retires.

This 5 year plan includes a ramp up of production that will bring Ferrari into new categories, and the rumored Ferrari FUV aka SUV, will be 1 of these new models that will really have the Italian marque in staggering profits.

Expecting to learn more about Mr. Marchionne’s plans for Ferrari in early Y 2018. This plan should include more volume models like an FUV, as well as more low-production specialty models and Limited Editions HyperSupercars.

As I have noted in this column Ferrari stock has risen steady since July of 2016 when it broke out of a post IPO Bearish trading channel and marked 40/share, and it does not look like that momentum will be slowing any time soon.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 117.43 3 November 2017 0.32 118.25 118.36 117.36 497,400
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.27) Bullish (0.41) Neutral (0.23) Neutral (0.17)

Have a terrific week.

 

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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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