Ferrari Reports Disappointing Financial Results
Ferrari’s stock price declined by 12% on July 31, marking its largest one-day drop since its initial public offering in 2016.
The luxury carmaker reported financial results for the period, which included a 4% increase in sales. However, profit margins declined.
Key Financial Highlights
- Sales increased by 4% compared to the previous period
- Profit margins declined
Company Response
Ferrari plans to cut prices in the US market, which has contributed to the stock’s decline. The company maintained its guidance, despite the disappointing financial results.
Share Buyback Program
Ferrari’s share buyback program, valued at up to €360 million, is currently underway. This program may help stabilize the stock price.
Analyst Reaction
Analysts believe the stock’s reaction to the financial results may be overdone.