Ferrari shares drop as CEO praises “aspirational” 2022 goals
You have to feel a little sorry for Louis Camilleri. Suddenly appointed to Ferrari’s top job when superstar CEO Sergio Marchionne died at the end of July, he not only has to worry about filling his predecessors sizeable shoes, but has to do it while reporting quarterly earnings – just a couple of weeks into the job! Predictably, the share price fell – even though earnings were actually pretty good!
Investors reacted harshly to Camilleri’s description of 2022 targets as “aspirational”
SOURCE: Yahoo Finance
Ferrari said that diluted earnings were up by 17% from last year’s figures, coming in at €0.84 per share. And while revenues were down from last year’s comparable quarter (by 1.6%), Ferrari said adjusting for currency effects transformed this into a positive +1.4%. Camilleri also reiterated Ferrari’s 2022 goal to double core earnings to €2 billion, describing it as “aspirational”.
The big news around Ferrari remains the unexpected demise of Sergio Marchionne last month. Ferrari, apparently, had not know he was ill (it seems as though Marchionne had kept his sickness to himself), and rushed to find a replacement in Louis Camilleri, a former chairman and CEO of Phillip Morris International and a Ferrari board member.
Camilleri paid tribute to his friend and predecessor on the earnings call, saying: “We were all deeply saddened by the loss of Sergio Marchionne. He was a man of immense talent blessed with a razor-sharp brain, an unparallel level of energy and a generous heart; clearly an inspirational and formidable leader for all those who have the privilege to work with and alongside him.”
Dominion holds Ferrari in its Global Trends Luxury Fund.
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