Ferrari shares plunge 16% as guidance update falls short of expectations
Ferrari shares plunge 16% as guidance update falls short of expectations
Shares of Ferrari plunged more than 16% on Thursday after the luxury carmaker updated its full-year and 2030 guidance and scaled back its electrification ambitions.
Analysts were disappointed by the new guidance, saying it fell short of expectations.
The Maranello, Italy-based sports car manufacturer said at its Capital Markets Day (CMD) event that it expected net revenue of at least 7.1 billion euros ($10.7 billion) this year, up from a previous forecast of more than 7 billion euros.
Net revenue is expected to be around 9 billion euros in 2030, and the company is targeting earnings before interest, tax, depreciation and amortization (EBITDA) of at least 3.6 billion euros by 2030.
Ferrari's Milan-listed stock price tumbled 16.1% on the news. The firm's U.S.-listed share price, meanwhile, was off more than 14.8% in premarket trade.
Analysts at Citi said in a research note that Ferrari's guidance "falls below our 'lower growth case' estimates from our CMD preview and reflects conservatism from management, we think."
They added: "Given guidance, albeit conservative, implies limited operating leverage through the coming cycle we think there is some risk to both consensus EPS and multiples near-term."
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