Ferrari (RACE) is scheduled to announce its first-quarter results on May 7. Since the company was listed on the NYSE in October 2015 with its IPO priced at $52 per share, the stock has risen 160.7% as of April 25. In 2016 and 2017, Ferrari stock impressed investors with 21.1% and 80.3% daily gains, respectively. The stock fell marginally by 5.2% in 2018. Ferrari is the top performing auto stock in 2019. The stock has risen 36.3% year-to-date—compared to a 16.7% rise in the S&P 500 benchmark.
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Ferrari’s first-quarter earnings
According to data compiled by Thomson Reuters, analysts expect Ferrari to report a rise of 4.3% YoY (year-over-year) in its adjusted EPS to 0.81 euros. In the fourth quarter of 2018, the company beat analysts’ consensus estimate of 0.83 euros by reporting an adjusted EPS of 1.00 euro.
Analysts expect Ferrari to report 3.6% YoY positive growth in its revenues to 861 million euros in the quarter ending in March. The company’s adjusted net profit margin is expected to expand to 18.4% from 17.9% a year ago.
During the earnings event for the fourth quarter of 2018, Ferrari’s management gave strong guidance for fiscal 2019. In 2019, the company expects its revenues to rise more than 3% on a YoY basis. Management expects Ferrari’s 2019 adjusted EBITDA margin to be near 34% compared to 32.6% in 2018.
On April 25, Ferrari stock settled at $135.56, which isn’t far from its all-time high of $149.85. If Ferrari manages to beat analysts’ first-quarter estimates by a wide margin, it could keep investors’ confidence alive and drive the stock up.