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Monday, December 6, 2021

Ferrari (NYSE:RACE) Wows Investors with its Stock’s Performance & New Supercars


With its Q-2 Y 2019 release, Ferrari  (NYSE:RACE)  delivered another strong Quarter of financial results. The company met Quarterly expectations and confirmed its financial guidance for the year.

The strong results were overshadowed by the discussion of Ferrari’s 2 new models on the call, including the company’s 1st hybrid Supercar.

Ferrari’s Q-2 Y 2019 numbers: Ferrari reported an increase in car shipments and revenue, driven by continued strong demand for its Portofino and 812 Superfast models.

The Portofino, introduced last year, has a V-8 engine and has been praised by Ferrari buyers and critics alike.

Revenue was also boosted by an increase of EUR 2-M in brand sponsorship activities primarily from professional motor racing.

Ferrari’s bottom line also came in strong. The luxury carmaker showed that EBITDA margin expanded by 0.10% in the Quarter compared to the prior year. Diluted EPS grew by a respectable 14%, on the back of EUR 150-M in share repurchases completed YTD. Ferrari also rewarded shareholders by increasing its dividend by 45%.

Looking ahead, the company reiterated its financial guidance for 2019: Investors can continue to expect revenue north of 3.5 billion euros, and earnings per share in the range of 3.50 to 3.70 euros. Ferrari delivered the goods when it came to financial figures, but the company also teased investors with exciting product updates.

A Key of Ferrari’s product strategy is to gradually release 1 to 2 new models yearly. Earlier this year, the company unveiled 2 models: the F8 Tributo and the SF90 Stradale.

The 2020 F8 Tributo is a V-8 turbo-engine car which replaces the company’s 488GTB model. As its name implies, the car was created in tribute to classic Ferrari design elements; it features 4 round taillights and a louvered rear window, similar to iconic Ferrari cars of the past.  

On Ferrari’s Q-2 earnings call, the company indicated that orders for the F8 Tributo have initially exceeded expectations, and are ahead of orders for prior models at a similar stage in their release.

The other new car coming to market is the 2020 SF90 Stradale is Ferrari’s 1st hybrid car. The SF90 Stradale runs on a V-8 turbo engine and 3 electric motors that can cumulatively produce 986 hp.

The SF90 Stradale is Ferrari’s response to the market that has been created for electric luxury sports cars. Despite being a plug-in hybrid, the SF90 has an 8-speed transmission, and can go from 0 to 60 mph in just over 2 secs. Ferrari’s management has also noted that demand for the SF90 Stradale has been robust and its order book is filling up fast.

Ferrari continues to wow investors and clienti, as it plans to unveil 2 more new car models at a 2-week event in Italy in September at its Maranello HQ.

It expects thousands of its clienti to attend the invitation only, and will also host a capital markets day for investors.

Looking ahead: Ferrari continues to execute its strategy of delivering steady earnings growth by unveiling a couple of new car models each year. Each model launch has been successful, and continues to build off the momentum of prior launches and the Ferrari brand.

This strategy and steady financial performance have been rewarded in the stock market by investors eager to own shares in the iconic Italian car brand.

Investors have no reason to doubt that Ferrari will continue to delight and excite its clienti, and deliver strong financial results to its loyal stakeholders.

Ferrari is the Aristocrat of the automotive sector.

Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

HeffX-LTN overall technical outlook for RACE is Neutral to Bullish, overhead resistance is at 161.92, and support at 156.52, some Key indicators are still flashing Bearish in here. Ferrari finished at 158.87, 1.23 Friday in NY.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.

Have a terrific week

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