Ferrari core earnings rise but shares slide after no upgrade to guidance

Reuters Milan, Italy Aug 02, 2019, 04.45 PM(IST)

File photo. Photograph:( Reuters )

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Trading in Milan-listed shares was halted for excessive declines after a 6.9% drop and they were down 3.95% by 1024 GMT.

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 signalled.

"The market was expecting them to raise their guidance for the year," a Milan-based trader said.

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 per cent to between 1.2-1.25 billion euros. Sales are seen growing by more than 3 per cent 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.

Adjusted EBITDA came at 314 million euros ($348 million) in the April-June period, in line with analyst expectations, according to a Reuters survey.