Luxury Sports Car Maker Ferrari's Stock Races Lower - Here's Why
Portfolio Pulse from Shivani Kumaresan
Ferrari N.V. (NYSE:RACE) shares dropped after announcing a less optimistic outlook despite reporting strong first-quarter FY24 results. The company surpassed analyst expectations with an 11% sales growth to €1.585 billion and a net profit increase of 19% to €352 million. However, its FY24 revenue and adjusted EPS forecasts fell short of analyst estimates, leading to a 3.16% decline in premarket trading.
May 07, 2024 | 1:12 pm
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Ferrari's shares fell after reporting a strong Q1 but a disappointing outlook for FY24, with shares down 3.16% in premarket trading.
Despite Ferrari's strong Q1 performance, the stock price is likely to go down in the short term due to the company's FY24 revenue and EPS forecasts not meeting analyst expectations. This discrepancy between performance and expectations can lead to negative investor sentiment, impacting the stock price negatively.
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