Ferrari cuts 2020 earnings forecasts and falls on the stock market. On Monday, the Maranello company announced that, due to the Covid-19 pandemic, the estimates for the current year have been revised downwards: the expectations on revenues drop from over 4,1 billion to 3,4-3,6 billion, while those on theAdjusted Ebitda drop from 1,38-1,43 to 1,05-1,2 billion and those on theAdjusted EBIT from 0,95-1 to 0,6 and 0,8 billion. As regards instead theadjusted diluted earnings, the spread is reduced from 3,90-3,95 to 2,4-3,1 euro per share. Finally, the predictions on industrial free cash flow they drop from 0,5 to 0,1-0,2 billion.
The worsening estimates come exactly three months after another revision of the 2020 guidance: the February 4however, Ferrari had raised the estimates for the current year compared to those released with the plan presented on the occasion of the Capital markets day.
For first quarter accounts, the January-March period ended for the Cavallino house with a Net income of 166 million euros, down 8% on year. It went better for you revenues, which reached 932 million euros, for a decrease of just 1% on a year-on-year basis.
On the profitability side, theEbitda, up 2%, to $317 million, with adjusted EBITDA margin at 34%, up 90 basis points. L'EBITon the other hand, it was equal to 220 million (-5%), with an adjusted margin of 23,6% (-110 basis points).
In terms of volumes, again in the first quarter of 2020 deliveries of cars increased 4,9% year over year, to 2.738 units.
After the release of the news on the cut of the estimates for 2020, Ferrari's share on the Stock Exchange skidded, losing more than 6%. In short, however, the shares recovered ground until they rose to the top of the Ftse Mib, with an increase of 1,4%% while the Ftse Mib scored -3,2%.
(Last update: 16.30 pm on 4 May).
