On Friday, the 2nd of August 2019, Shares of Ferrari SpA, the Italian luxury automaker headquartered in Maranello took a header of roughly 7 percent to report its largest intra-day plunge since October 8th 2018, when it tumbled around 10 percent, despite a solid surge in quarterly operating profit during Q2, 2019.
If truth is to be told, share prices of Ferrari went into reverse gear on Friday (August 2nd), after the 72-year-old Italian carmaker had failed to uplift its full-year forecast for 2019. According to Ferrari’s Q2 earnings’ report released later last week, Ferrari’s net profit rose by 8.7 percent during second quarter of the year to €314 million ($348 million) which was well in an alignment with analysts’ forecast.
Nonetheless, despite a drop in its profit margins to 32 percent on Q2, 2019, from 33.1 percent a quarter earlier against a full-year estimate of 34 percent, Ferrari had confirmed that that the Italian carmaker was well on track to post all of its relevant earnings’ figures at their higher ends including operating profit margins.
However, despite a robust market expectation that the luxury carmaker would uplift its yearly outlook for 2019, in a post-earnings’ call with the reporters, accusing several factors including geo-political bubbles behind his decision not to heighten full-year earnings’ forecast, Ferrari Chief Executive, Louis Camilleri said on Friday (August 2nd), “It would seem to me that it was a prudent move on our path.
” Nevertheless, despite a sharp plunge of as much as 7 percent to €139.05 per share during midday European trading hours, Milan-listed shares of Ferrari wrapped up Friday’s (August 2nd) market 4.25 percent lower to €142.90 a share.