Unlike many automakers, Ferrari had a solid second quarter – at €0.84 or $0.98 per share, beating Wall Street analysts’ estimate of €0.80. This was 17% higher than its adjusted EPS of €0.72 in Q2 2017. The Italian Sports car and racing company reaffirmed its 2018 outlook as well. The second-quarter results on small volume sales shames much larger automakers such as FCA, Ford Motor and General Motors. (See AutoInformed.com on Sergio Marchionne Dead at 66, Ferrari 70th Anniversary – 125 S Drives Around Maranello)
During Q2, Ferrari (RACE) reported net revenue of €9.6 million (or, gasp $1.05 billion). Its revenue fell 1.6% from €920 million in the same quarter of 2017. Its shipments to all its major markets rose year-over-year. Globally, it shipped 2,463 cars to customers, +6% over 2,332 units shipped in Q2 2017 and higher than 2,128 units shipped in the first quarter of 2018.
Ferrari stock year-to-date gained 19.1% compared to the 6.2% the S&P 500 Index. The stocks of other automakers are laughably weak. Fiat Chrysler (FCA) -5.2%, General Motors (GM) -8%, and Ford (F) -18.7% were easily lapped by the Prancing Horse.
When it posted Q2 earnings, Ferrari stock rose, but plummeted after the analyst call. It opened at $134.51, up 1.4% from its previous session’s closing price. After the conference call, it fell -11% from the previous day’s closing price.
Despite solid year-over-year growth in its second-quarter earnings, Ferrari’s newly appointed CEO Louis C. Camilleri’s remarks on the company’s 2022 target spooked investors.
In 2017, Ferrari stock outperformed most if not all mainstream automakers (XLY) with its impressive 80.3% positive returns. It’s been a good run. AutoInformed.com see no reason it can’t continue.