Ferrari (RACE) stock was down 2.4% as of 1:23 PM ET today. The luxury sports car maker reported strong second-quarter results today.
Ferrari maintains strong fundamentals
In the second quarter, Ferrari’s core earnings rose 8.7%, driven by robust deliveries of its Portofino and 812 Superfast models. Its adjusted EBITDA grew 8.7% to 314 million euros, and its net revenue rose 8.6% to 984 million euros. Business Insider reports that the company’s adjusted EBITDA was within analysts’ expectations, and that the company has been strong since its IPO in 2015.
Why did Ferrari stock fall?
This year, the company expects its adjusted EBITDA to grow around 10% to 1.2 billion–1.25 billion euros, and its sales to grow more than 3% to over 3.5 billion euros. Ferrari CEO Louis Camilleri stated that the company didn’t raise its guidance for various reasons, including the discontinuation of certain models this year and global trade tensions. He added that the company plans to unveil two new models in September to enhance growth.
Other auto stocks’ performance
As of 1:25 PM ET today, mainstream automakers General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) had fallen 1.02%, 0.27%, and 0.27%, respectively. Trump’s announcement of additional tariffs on China yesterday affected auto stocks, which depend heavily on the Chinese market.
GM fell despite beating estimates in its earnings release yesterday. Meanwhile, peers Ford and Tesla (TSLA) missed analysts’ estimates when they reported their quarterly earnings last week. Year-to-date, GM, Tesla, and Ferrari have risen 20.0%, 29.7%, 64.0%, respectively. Fiat is down 10.0%. GM announced on July 30 that it is halting production at one of its oldest plants in Michigan. And last year, Ford announced plans of reducing its salaried workforce.
Markets plunged on Wednesday after the Fed announced a rate cut. That market decline continued after Trump’s tariff announcement yesterday. The SPDR Dow Jones Industrial Average ETF (DIA) has fallen 0.44% today, while the Invesco QQQ Trust ETF (QQQ) has fallen 1.4%. The SPDR S&P 500 ETF (SPY) has fallen 0.66%.