- Ferrari posted an improve Q2 profits, but the markets were looking for a bump in 2019 guidance for the second half.
- Shares plunged in Milan, but they declined only modestly in New York on the results.
- The profits were driven by strong sales of the Portofino and 812 Superfast models.
Ferrari has been posting strong financial results for years, but the markets want more.
Shares in Ferrari went into reverse on Friday as the Italian luxury carmaker failed to lift its guidance for 2019 despite strong results in the first part of the year.
Releasing its second quarter results, the company confirmed that it was on track for the higher end of the guidance range for all relevant figures. However, that left some disappointed that there was no upgrade signaled.
Trading in Milan-listed shares was halted for excessive declines after a 6.9% drop and they were down 3.95% by 1024 GMT.
For 2019, Ferrari forecasts its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to rise around 10 percent to between 1.2-1.25 billion euros. Sales are seen growing more than 3 percent to more than 3.5 billion euros.
In the second quarter, core earnings rose 8.7%, led by robust deliveries of its Portofino and 812 Superfast models. Those models are revamped versions of the California T and F12 Berlinetta.
Adjusted EBITDA came at 314 million euros ($348 million) in the April-June period, in line with analyst expectations, according to a Reuters survey.
On the New York Stock Exchange, Ferrari’s stock slid a little over 1% to $160 in pre-market trading Friday. Shares are up almost 65% year-to-date.
Ferrari’s financial performance has been notable since the carmaker’s 2015 IPO, making it one of the best names in the sector. Under late CEO Sergio Marchionne, who engineered the marques spinoff from Fiat Chrysler Automobiles, Ferrari move to expand sales, design an SUV, and even commit to an all-electric supercar.
Ferrari’s position is unique in that the company is valued like a luxury-goods purveyor, such as Hermès, while also operating one of the world’s most successful Formula One racing teams.
(Reuters reporting by Giulio Piovaccari; additional reporting by Giancarlo Navach; editing by Keith Weir.)
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