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Ferrari’s (NYSE:RACE) Q-4 and FY 2020 Earnings Conference Call

#Ferrari

$RACE

Tuesday, Ferrari (NYSE:RACE) management held a conference call with analysts and institutional investors where the Maranello Outfit presented its FY 2020 results.

A recording is available on Ferrari’s website http://corporate.ferrari.com/en/investors.

Attachment: 2021_02_02 – Ferrari FY 2020 Results Press Release_

Ferrari’s Q-4 and FY 2020 Earnings Conference Call, 2 February, 2021 at 9:00a ET

Company Participants: John Elkann – Executive Chairman and Acting Chief Executive Officer; Antonio Piccon – Chief Financial Officer and Nicoletta Russo – Head of Investor Relations

Chairman/Acting CEO John Elkann: “Good morning and afternoon to all. I would like to start thanking all of my colleagues in Ferrari for the remarkable results in 2020, a testament to the strength of our business model, and resilience of our core business.

We exceeded full year guidance on all metrics in 2020. These results have been achieved, factoring the impacts of COVID-19 on all of our activities. This environment gave us the opportunity to learn more about our strengths and weaknesses, which allowed us to further fortify our company for the future.

2020 has also been characterized by the successful digital unveiling of the Ferrari Portofino M, SF90 Spider and 488 GT Modificata. Today, we have the most beautiful, most innovative, and widest product range in our history.

I would like to highlight some of our achievements that we are particularly proud of.

Back on Track, which is Ferrari’s program to safeguard the health of our employees in a COVID-19 secured environment, which has become a reference in Italy and around the world.

Our Equal salary certificate: in July, we were the first Italian company awarded in recognition of the same compensation amongst women and men for equivalent roles and jobs, testifying our commitment to create an inclusive and diverse working environment. And social responsibility in helping with different activities during this pandemic crisis.

I will mention a few which we are particularly proud of here.

We launched with our clients in fundraising, matching all of their donations to support the medical staff and the health system of our community in Maranello and surroundings.

We joined forces with the Italian Institute of Technology to present the open source project SI 5, a revolutionary low cost and lightweight pulmonary ventilator.

And during the 7 weeks closure of the factory, we did not use any state aid program and continue to pay full salaries of all of our employees.

“Also 2020 was a year of celebration.

Our 1,000 Grand Prix, the highest number in Formula One ever reached; our victories in the GT racing season and we reached over 2.5 million visitors in our eSports series. But our 2020 Formula One results reminded us that a great past does not equate to a great present or future. This painful reality, both for ourselves and our fans is that from which we must restart with humility, focusing on what will make us competitive and ultimately lead to winning.

As we enter into 2021, which Antonio Piccon will give you more details about, later we continue to work on our product plan for this exciting decade ahead, adapting it to a fast evolving environment.

Our journey to carbon neutrality will provide a wider framework for our future. We are working on a clear plan, including Formula One to become carbon neutral through actions taken directly and indirectly within this decade.

We are optimistic about the opportunities ahead of us and look forward to sharing and discussing the future of Ferrari for this decade at our Capital Markets Day in the first half of 2022.

Now, let me address the CEO succession.

We have established as a board, a search committee, which is responsible for a process to identify the successor to Louis Camilleri. And we want to take the necessary time to find the best possible CEO for our company.

“On this note, I would like to express my most sincere thank you to Louis, who is listening on our Call today about his personal commitment, as our CEO since 2018 and as a member of our board since 2015. His passion for Ferrari is and has been limitless.

Under his leadership, the company has firmed up its position as one of the world’s greatest companies. Louis built a leadership team that is continuing to drive our company forward as our results demonstrate, and for which I am personally grateful to him, and to all of my colleagues at Ferrari.

“I now hand over the call to Antonio who will review of for year 2020 results and 2021 guidance. Since our strategy remains unchanged, and our execution of it is on track. He will directly manage the Q&A session. I would like to thank you all and pass it over to Antonio…

The entire call recording is available on Ferrari’s corporate website: http://corporate.ferrari.com/en/investors.

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

Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.

Ferrari is trading Wednesday pre-market at 205.86 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.

All technical indicators have turned Neutral. Ferrari’s stock is oversold in here, but the pattern indicates the confirmation of the break out at 196.01 on 3 November and has confirmed. Stay tuned…

Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high

The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, Morgan Stanley and Bank of America. UBS is now calling the stock at 365. Citi downgraded the stock from Buy to Neutral Thursday. I have not seen any other Street downgrades.

Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.

Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.

I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.

Ferrari has an average rating of Buy and a consensus target price at 239.98.

The Maranello Outfit’s shares were raised to Buy from Hold at HSBC.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I am calling it 375 long term , the Top on the Street, and adjusting it to 230/share short term.

A number of large investors have recently bought shares of RACE, and there has been just 1 instance of insider selling over the past yr that we have seen.

The stock is considered defensive in the sector.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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