Ferrari (NYSE:RACE) Outperforms All Car-makers YTD

Ferrari (NYSE:RACE) Outperforms All Car-makers YTD

Ferrari (NYSE:RACE) Outperforms All Car-makers YTD


Ferrari (NYSE:RACE), the Italian luxury Supercar maker reports Q-2 Y 2017 earnings on 2 August

Recall that the iconic sports car maker was spun off from Italian-American automaker Fiat Chrysler (NYSE:FCAU) on 20 October 2015 with an oversubscribed IPO (initial public offering).

As of 26 July 2017, Ferrari stock has risen over 20% on a MTD basis to an all-time high.

Now let’s take a look at the company’s Q-2 Y  2017 stock performance.

In Q-2 Y 2017, Ferrari stock traded on a positive note and impressed investors with a 15.8% positive return.

That Vs a rise of just 2.6% for the S&P 500 benchmark (NYSEArca:SPY) during the Quarter. US automakers (XLY) General Motors (NYSE:GM) and Ford (NYSE:F) fell in Q-2 of Y 2017. GM delivered a negative return of 1.2%, and Ford ended the Quarter with a loss of 3.9%.

Notably, Ferrari’s former parent company, Fiat Chrysler, fell 2.7% in Q-2 of Y 2017. Investors’ worries about weakening US auto sales could be the primary reason behind the negative performance of mainstream automakers.

1st, a recap of Ferrari’s Q-1 Y 2017 earnings, then to Q-2 Y 2017 earnings estimate.

In Q-1 Ferrari reported solid adjusted EPS of US$ 0.64. That about a 60.0% up from EPS in the corresponding Quarter of the prior year, beating Wall Street analysts’ estimate of US$0.61.

Now, a look at analysts’ estimates for Ferrari’s Q-2 of Y 2017 earnings and explore whether this positive trend in its earnings is expected to continue.

We estimating that the existing positive trend in Ferrari’s earnings will remain intact.

Ferrari’s Q-2 earnings should be US$0.81/share. That isa rise of about 34.0% from its adjusted EPS in Q-2 of Y 2016.

This is strong growth for Ferrari’s Q-2 earnings, and in line with the company’s guidance to deliver about 8,400 cars in FY 2017.

Ferrari has increased its annual car shipments in the last 2 of years. Consistent demand from North America, Europe and China’s EM is the primary reason for this positive growth outlook.

The company used to limit its annual car production volume to maintain exclusivity and scarcity of Ferrari vehicles in the market, not so now, as supply does not meet demand.

Ferrari’s annual sales are a fraction of other mainstream automakers such as General Motors, Ford, and Fiat Chrysler.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 105.34 26 July 2017 3.94 102.89 105.63 102.89 1,002,651
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.38) Neutral (0.19) Very Bullish (0.50) Bullish (0.46)

Stay tuned…

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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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