Ferrari (NYSE:RACE) Beats ‘The Street’, Stock Roars

Ferrari (NYSE:RACE) Beats ‘The Street’, Stock Roars

Ferrari (NYSE:RACE) Beats ‘The Street’, Stock Roars


Ferrari (NYSE:RACE), the iconic Italian manufacturer of high performance cars reported above-consensus Q-1 earnings of 0.96/share on revenue of nearly $1-B, which increased 1.2% Y-Y.

Vehicle shipments totaled 2,128 during Q-1, +6.2% Y-Y. Shipment growth was driven by sales of V12 models while sales of V8 models were consistent with last year’s totals.

Sales of V12 models were supported by strong demand for the 812 Superfast.

The growth was offset by the phaseout of the F12berlinetta and lower sales of the LaFerrari Aperta, which is completing a limited run of sold out hybrids.

V8 sales were underpinned by the 488’s and sales of the GTC4Lusso T.

Deliveries of the new Ferrari Portofino will begin in Q-2 Y 2018.

Q-1 shipments to China, Hong Kong and Taiwan grew 13.7% Y-Y to 183 units while shipments to the rest of Asia-Pacific rose 3.8% to 273 units.

Shipments to the Americas increased 4.4% to 569 units while shipments to Europe, Middle East, and Africa grew 6.7% to 1,103 units.

Adjusted earnings before interest, taxes, depreciation, and amortization grew 12.4% to EUR 272-M while Net profit improved 20.2% to EUR 149-M.

Net industrial debt declined 12.7% Y-Y to EUR 413-M.

Looking to the remainder of the year

Ferrari expects to ship more than 9,000 vehicles while net revenue is expected to exceed EUR 3.40-B. Adjusted EBITDA is expected to exceed EUR 1.10-B, while net industrial debt is expected to be below EUR 400-M at the end of Y 2018.

Ferrari, the world’s Top automotive brand remains confident in its ability to deliver adjusted EBITDA of EUR 2-B, and industrial free cash flow of EUR 1.20-B by Y 2022 and to be free of industrial debt by Y 2021.

The Scuderia has seen a good start to the 2018 F1 season with team driver Sebastian Vettel winning 2 out of the 1st 4 races.

My near term call is 134.15 near term, long term 200.00, as there is no overhead resistance; Ferrari is an Aristocrat Stock.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 131.18 May-03-2018 5.37 124.18 133.45 123.71 1,068,454
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (0.19) Bullish (0.28) Bullish (0.29) Neutral (-0.00)

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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