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Ferrari Jumps as Production Revs Up; Outlook Positive

Published 11/03/2020, 10:47 AM
Updated 11/03/2020, 10:48 AM
© Reuters.
RACE
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By Christiana Sciaudone

Investing.com --  Ferrari (NYSE:RACE) rose 6% after saying it would meet the high end of its guidance for 2020. At least someone's having a good year.

Adjusted earnings before interest, taxes, depreciation, and amortization for 2020 are expected at 1.1 billion euros ($1.28 billion), with adjusted earnings per share of 2.80 euros, both on the high end of guidance from August.

Not that it was a great quarter. Shipments of 2,313 vehicles were down by 161 units from a year earlier, while revenue of 888 million euros failed to meet the expected 899 million euros.  

About 2,000 cars were not made because of a seven-week production suspension due to the Covid-19 pandemic, but the company expects to be able to catch up and make 500 of those units.

Shares are trading close to the record hit in August, and are up about 20% in 2020.

Sponsorship, commercial and brand revenues fell about 31% because of a reduction in the number of Formula 1 races and corresponding lower revenue accrual, as well as reduced in-store traffic and museum visitors.

 

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