Ferrari’s (NYSE:RACE) Supercars Drive Stock Prices Higher

Ferrari’s (NYSE:RACE) Supercars Drive Stock Prices Higher

Ferrari’s (NYSE:RACE) Supercars Drive Stock Prices Higher


Ferrari (NYSE:RACE) attributes its big numbers to its big V12 cars, as its GTC4Lusso, the LaFerrari Aperta and the F12tdf as particularly strong performers.

Looking ahead, the company confirmed its outlook for unit sales of 9,000, including the V-12 supercars, and net revenues of more than $3.61-B. Adjusted EBITDA is forecast to exceed $1.10-B.

In Y 2014, the year before its IP, Ferrari delivered 7,000 cars.

Its former Chairman, Luca Cordero di Montezemolo bet on keeping production low and lucrative customization’s high.

But, Fiat Chrysler (NYSE:FCAU) Chairman and CEO Sergio Marchionne wanted Ferrari to expand its position in the Super premium car market and ultimately produce around 10,000 cars a year.

Mr. Marchionne won the argument and Mr. Montezemolo resigned.

Ferrari’s growth has expanded according to CEO Marchionne’s plan and if Ferrari keeps up that pace, it will hit 10,000 units about 2 years.

We are expecting the Maranello outfits’ 5 year plan in February.

And the most expensive cars are the best sellers.

The GTC4Lusso starts at $300,000, the F12tdf starts at around $324,000 and the LaFerrari rings in at a cool $1.4-M. The V-8 Portofino starts at around $210,000, and the 488GTB carries a starting price of $249,150.

More units sold for more revenue per unit, that is a sales model any company would take, and Ferrari leads the world’s automotive sector by miles…

Ferrari is set to report Q-4 and F-Y 2017 results on 1 February.  Last Q, the company delivered a positive surprise of 20.8%. It also surpassed estimates in each of the trailing 4 Quarters, with an average beat of 27.6%.

Over the past year, shares of Ferrari have outperformed the entire automotive industry. The company’s shares have increased 98.7% compared with the industry’s growth of 35.9%.

For the Whisper numbers go here.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 118.29 30 January 2018 -0.43 118.78 119 118.05 394,832
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.38) Bullish (0.29) Bullish (0.29) Very Bullish (0.54)

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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