Why Ferrari’s 2Q17 Results Cheered Up Investors



Ferrari’s 2Q17 earnings

Ferrari (RACE), the renowned Italian luxury carmaker, released its 2Q17 earnings results on August 2. The company’s adjusted earnings stood firm at 0.72 euros, or $0.86, per share in the second quarter this year. This was ~38.5% higher than its adjusted EPS of 0.52 euros in the corresponding quarter of 2016.

Earlier, analysts were estimating Ferrari’s 2Q17 earnings to be at 0.70 euros, or $0.83, per share.

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Stock nears all-time high

On the day of its 2Q earnings release, Ferrari stock opened on a negative note at $106.00. However, the stock turned positive later in the session and posted a fresh all-time high of $111.45 and closed with 2.0% gains.

The consistently strong growth of Ferrari’s V12 models for the third consecutive quarter and solid shipments and revenue growth could be some of the key reasons for investors’ positive reaction.

In 2Q17, Ferrari stock outperformed all mainstream automakers and delivered a positive return of about 15.7%, which was far better than the 2.6% gains seen in the S&P 500 (SPY) benchmark during the quarter. Meanwhile, automakers such as General Motors (GM), Fiat Chrysler (FCAU), and Ford ended the quarter with 1.2%, 2.7%, and 3.9% losses, respectively.

Series overview

In this series, we’ll take a closer look at Ferrari’s 2Q17 earnings highlights, revenues, and profitability. We’ll find out what factors drove the company’s second quarter earnings. Later in the series, we’ll take a look at some important factors that drove the company’s profit margins higher in the second quarter.


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