You could say Ferrari NV made a hot rod for its own back. When the Italian sports car maker started selling the $2.1 million LaFerrari Aperta convertible in 2016, it helped supercharge revenue and profit growth. Unfortunately the problem with limited editions is that shipments ultimately end.
The slowdown of the supercar’s sales contributed to Ferrari missing analysts’ revenue and profit forecasts in the third quarter, compounded by currency difficulties. But it doesn’t make sense to all of a sudden become a Ferrari pessimist. For a start, even as they missed expectations, earnings still ticked upwards. And investors should have a little faith in the company’s strategy.
