Ferrari slides despite improved earnings

https://www.businessinsider.in/ferrari-slides-despite-improved-earnings-after-the-supercar-maker-declines-to-raise-guidance/articleshow/70498566.cms

 

One of the interesting points is that V12 sales were down on the quarter

Analysts call transcript to be released later today may contain other interesting details

Stradale still scheduled for H1/20

No model breakdown given

 

It's the usual analyst demand that the company demonstrate even more incremental progress.

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Analysts no sens

 

China, tariffs, blah,blah,blah....

 

The stock pulled back because it was way ahead of itself going into the earnings release .
Shares were up 60% year to date going into the earnings release. And the shares trade at almost 40 times this year‘s earnings and 35 times next year‘s earnings (vs 17 times for the S&P 500 for example).
When a stock trades wilh that crazy high of a multiple it needs to beat the earnings consensus number by a considerable margin.
Ferrari, as well as some other luxury good manufacturers, tend to trade at significant market multiple premiums. But at 40 times it just got ahead of itself.
Still is a great company. But great companies can easily watch their share price decline if the multiple gets too high and earnings expectations aren’t beat.

 

When will Ferrari become private again?

 

Maybe you guys dont watch the market, but everything slide. We lost 200 ES pts in a few days. That doesnt happen very often

 

I watch it VERY closely. Have been a professional investor for 28 years .

 

Then you are aware of whats happened recently and that RACE sliding has more to do with the market in general than its earning.

 

Not quite accurate but not going to argue.

 

Rob is absolutely correct! But, gee, why let actual "facts" get in the way of a good story