Can New Ferrari CEO Camilleri Meet Marchionne’s Targets?

AutoInformed.com on FerrariUnlike 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.

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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One Response to Can New Ferrari CEO Camilleri Meet Marchionne’s Targets?

  1. Pingback: Fasten Your Seatbelt – General Motors Files RICO Lawsuit Against Fiat Chrysler Automobiles | AutoInformed

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