Ferrari (NYSE:RACE) Posted Strong Earnings in Q-2, Selloff Overdone
- Ferrari posted a rise in Q-2 earnings and stayed the course on full-year guidance.
- Strong sales of the Ferrari 488 suite of sports car and the big-engined 812 Superfast aided the result
The iconic Italian supercar maker Ferrari (NYSE:RACE) reported a 7% rise in Q-2 adjusted core earnings, helped by sales of the 812 Superfast model and the 488 suite of Supercars, and confirmed its outlook for the full year.
In the 1st set of results presented by newly-appointed Chief Executive Louis Camilleri, 63 anni, the company said adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose to $339-M in the Quarter, in line with a Thomson Reuters SmartEstimate
Profit margins rose to 31.9% from 29.4% the strongest in the world wide automotive sector.
CEO Camilleri had a difficult 1st call with annalists early Wednesday
When asked about how he planned to deliver on the targets set by his predecessor, Mr. Camilleri said he would provide details during investor days to be held on 17-18 September at the company’s HQ in Maranello, Italy
“They are aspirational targets. At the capital markets day we will tell you how we plan to get there,” he said.
“We will also have to disclose potential risks to that, but also significant opportunities that we see going forward.”
Ferrari’s shares fell after the comments and closed down 11% in New York.
The selloff appears to be very much over done.