Last month, shares of the iconic Italian luxury sports-and-racing-car maker Ferrari (NYSE:RACE) rose according to the pattern that set up at the end of December, aka a Key reversal.
According to data from S&P Global Market Intelligence, Ferrari’s shares rose just over 27% in January far outpacing the S&P 500 Index’s 7.87% gainer.
Some of that increase was a recovery from the broad-based market sell-off in Q-4 of Y 2018. But Ferrari’s shares spikedon the last day of January, after a surprise strong earnings report and optimistic guidance.
Ferrari reported its Q-4 and Y 2018 results on 31 January and they were surprisingly good. Ferrari’s operating income rose 6% in Y 2018 on a 10.2% increase in worldwide shipments, and a tax break in Italy gave its after-tax income a boost too.
The Key takeaways for Ferrari investors in the report beyond the headline numbers are as follows:
- Ferrari’s fat 23.1% Q-4 operating margin was unchanged from the year-ago frame, despite the end of production of the super-profitable limited-run LaFerrari Aperta HyperSuper car.
- Worldwide demand for the V12-powered 812 Superfast remained very strong a year after its debut.
- While some Western luxury brands saw sales in China drop sharply in Q-4, Ferrari did not. Ferrari’s deliveries in China, Hong Kong, and Taiwan were up a combined 6% for the Quarter, 13% on the year.
During Thursday’s morning’s earnings call, Ferrari executives noted that the company will launch 5 new models in 2019 and gave upbeat guidance for the year.
It anticipates that those new models, as well as continued demand for its high-margin V12-powered cars, will lift its revenue, earnings, operating margin, and cash flow for the year above Y 2018’s strong results.
|RACE||126.3||31 Jan 2019||13.61||116.04||127.07||116.04||2,264,400|
HeffX-LTN overall technical outlook for RACE is Bullish to Very Bullish in here there is very little resistance here and none above 140.26.
Have a terrific week.