Ferrari (NYSE:RACE) Trading at 52 Wk Highs Ahead of Earnings Call

Ferrari (NYSE:RACE) Trading at 52 Wk Highs Ahead of Earnings Call

Ferrari (NYSE:RACE) Trading at 52 Wk Highs Ahead of Earnings Call


Ferrari (NYSE:RACE) is set to report Q-3 Y 2017 earnings before the opens on 2 November.

Last Quarter, the company delivered a positive earnings of 19.7%. It also surpassed estimates in each of the trailing 4 Quarters, with an average beat of 27.9%.

The Big Q: How things are shaping up for this announcement?

Ferrari has diversified its revenue sources and generates the majority from selling luxury Supercars, engines and Ferrari branded merch. The company also owns an iconic F1 racing team and theme parks.

In Q-2 Y 2017, Ferrari took in adjusted earnings of 0.79 per ADR (share)that surpassed the consensus estimate of 0.66.

For Q-3 Y 2017, the Consensus Estimate for earnings is pegged at 0.72/share.

HeffX-LTN predicts that the existing positive trend in Ferrari’s earnings will continue.

According my estimate, Ferrari’s Q-3 Y 2017 earnings should be 0.79/share.

This estimate reflects an increase of 15.3% from its adjusted earnings of EUR 0.59/share in the same Quarter of Y 2016.

Consistent demand from North America, China and Europe is a Key reason for my positive growth expectation.

 This positive growth expectation for Ferrari’s Q-3 Y 2017 earnings is also in line with the company’s guidance to deliver about 8,400 cars in FY 2017.

Note that in the last couple of years, Ferrari has increased its annual car shipments. The company is known to limit its annual car production volume to maintain exclusivity and scarcity of Ferrari vehicle.

According to the latest data compiled by Reuters, 40% of the 10 analysts covering Ferrari stock gave it a “‘buy” recommendation. Another 30% of analysts have recommended a “hold,” and the remaining 30% of analysts think the company’s stock will under-perform the broader market and gave it a “sell” recommendation.

HeffX-LTN has had Ferrari as a Strong Buy since late July 2016 and reiterates it today.

As of 27 October 2017, Ferrari’s consensus 12-month target price was 108.84.

Wednesday, its market price marked 121.00, a 52 week high, and much higher than its consensus target price.

My mid-term call is 132/share 24 above the consensus target. 

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 120.47 1 November 2017 0.79 121 121.14 119.93 244,332
HefX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.33) Bullish (0.47) Bullish (0.35) Neutral (0.17)


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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