Post-COVID remote work trends are making a dent in the long-term prospects of car companies. But at least one of them presented surprisingly good figures in the middle of the week. It was the Modena, Italy-based sports car manufacturer Ferrari (NYSE:RACE). Unlike many other carmakers, Ferrari was able to put the pedal to the metal in the third quarter. Deliveries were up 18.9% year-on-year.
Unexpectedly high demand was recorded in particular from China (up 109% to 245 cars) and North and South America (up 40% to 706 cars). Over the year as a whole, sales figures rose to 8,206 units.
The Board Raises its Forecasts
In fact, the figures for the summer quarter between July and September were so good that Ferrari yesterday shot up it’s forecast for the year. The company now expects gross operating profit of 1.52 billion euros. The previously-stated range was 1.45 to 1.5 billion euros.
In terms of adjusted operating profit, the company now expects to achieve 1.05 billion euros. This is a jump up from between 970 million and 1.02 billion euros.
Share Price Jumps
Ferrari shares were richly-valued even before the earnings report. But the day of the report, they shot up by 6.2% to over $261. Market capitalization thus reached a proud $47 billion.
However, it has now reached a valuation level that no longer seems justified, at least in the short term. All it takes is a small disappointment and the stock will plummet just as quickly.