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What's in Store for Ferrari (RACE) This Earnings Season?
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Ferrari N.V. (RACE - Free Report) is set to report fourth-quarter and full-year 2017 results on Feb 1. Last quarter, the company delivered a positive surprise of 20.8%. It also surpassed estimates in each of the trailing four quarters, with an average beat of 27.6%.
Over the past year, shares of Ferrari have outperformed the industry it belongs to. The company’s shares have increased 98.7% compared with the industry’s growth of 35.9%.
Let’s see how things are shaping up for this announcement.
Ferrari, a former subsidiary of Fiat Chrysler Automobiles N.V., has diversified its revenue sources and generates most of it from selling luxury cars, engines and Ferrari brand merchandise. The company also owns a Formula 1 racing team as well as theme parks.
In 2017, the company anticipates vehicle shipments of around 8400, unchanged from that of previous outlook. In 2017, net revenues are anticipated to be around €3.4 billion, driven by Cars and spare and Engines. This is higher than the prior expectation of €3.3 billion. Also, 2017 adjusted EBITDA is anticipated to be around €1 billion, higher than the prior outlook of more than €950 million.
However, Ferrari has been facing challenges due to recalls related to the Takata airbags. The company has been making more recalls and has also raised an expected expenditure on that front.
Over the past 30 days, the Zacks Consensus Estimates for both the current quarter and full-year 2017 have remained unchanged.
Earnings Whispers
Our proven model does not conclusively show that Ferrari is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:
Zacks ESP: The Earnings ESP for Ferrari is -10.45% as the Most Accurate estimate and the Zacks Consensus Estimate are currently pegged at 60 cents and 67 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ferrari carries a Zacks Rank #3, which increases the predictive power of ESP. However, the stock’s negative ESP doesn’t make us confident of a positive earnings surprise.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few other auto stocks worth considering from the same space with the right combination of elements to beat estimates this time around.
Tenneco Inc. has an Earnings ESP of +1.94% and a Zacks Rank #3. The company will report fourth-quarter 2017 financial figures on Feb 9.
Genuine Parts Company (GPC - Free Report) has an Earnings ESP of +4.83% and a Zacks Rank #3. The company’s fourth-quarter 2017 financial numbers are expected to be announced on Feb 20.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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What's in Store for Ferrari (RACE) This Earnings Season?
Ferrari N.V. (RACE - Free Report) is set to report fourth-quarter and full-year 2017 results on Feb 1. Last quarter, the company delivered a positive surprise of 20.8%. It also surpassed estimates in each of the trailing four quarters, with an average beat of 27.6%.
Over the past year, shares of Ferrari have outperformed the industry it belongs to. The company’s shares have increased 98.7% compared with the industry’s growth of 35.9%.
Let’s see how things are shaping up for this announcement.
Ferrari N.V. Price and EPS Surprise
Ferrari N.V. Price and EPS Surprise | Ferrari N.V. Quote
Influencing This Quarter
Ferrari, a former subsidiary of Fiat Chrysler Automobiles N.V., has diversified its revenue sources and generates most of it from selling luxury cars, engines and Ferrari brand merchandise. The company also owns a Formula 1 racing team as well as theme parks.
In 2017, the company anticipates vehicle shipments of around 8400, unchanged from that of previous outlook. In 2017, net revenues are anticipated to be around €3.4 billion, driven by Cars and spare and Engines. This is higher than the prior expectation of €3.3 billion. Also, 2017 adjusted EBITDA is anticipated to be around €1 billion, higher than the prior outlook of more than €950 million.
However, Ferrari has been facing challenges due to recalls related to the Takata airbags. The company has been making more recalls and has also raised an expected expenditure on that front.
Over the past 30 days, the Zacks Consensus Estimates for both the current quarter and full-year 2017 have remained unchanged.
Earnings Whispers
Our proven model does not conclusively show that Ferrari is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:
Zacks ESP: The Earnings ESP for Ferrari is -10.45% as the Most Accurate estimate and the Zacks Consensus Estimate are currently pegged at 60 cents and 67 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ferrari carries a Zacks Rank #3, which increases the predictive power of ESP. However, the stock’s negative ESP doesn’t make us confident of a positive earnings surprise.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few other auto stocks worth considering from the same space with the right combination of elements to beat estimates this time around.
BorgWarner, Inc. (BWA - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank #3. The company’s fourth-quarter 2017 financial results are expected to be released on Feb 8. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tenneco Inc. has an Earnings ESP of +1.94% and a Zacks Rank #3. The company will report fourth-quarter 2017 financial figures on Feb 9.
Genuine Parts Company (GPC - Free Report) has an Earnings ESP of +4.83% and a Zacks Rank #3. The company’s fourth-quarter 2017 financial numbers are expected to be announced on Feb 20.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>