Ferrari (NYSE:RACE) Shares + 27% in January

Ferrari (NYSE:RACE) Shares + 27% in January

$RACE

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.

RACE Chart
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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.

Ferrari is the Aristocrat of of world’s automotive sector and the world’s strongest brand.

SymbolLast TradeDateChangeOpenHighLowVolume
RACE126.331 Jan 201913.61116.04127.07116.042,264,400

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.

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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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