Ferrari : Ubs Raises Target Price To $513 From $478

Consumer stocks were higher Tuesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) up 0.4% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 1.5%.

In corporate news, Restaurant Brands International's Q3 results fell short of market estimates as overall comparable sales growth slowed down amid declines at Burger King, Popeyes Louisiana Kitchen and Firehouse Subs. Its shares fell 2.6%.

Dollar Tree shares declined 0.3% after the company said that Rick Dreiling stepped down as chairman and chief executive due to health reasons.

Ferrari reported Q3 earnings Tuesday of 2.08 euros ($2.27) per share, up from 1.82 euros a year earlier and above the Capital IQ consensus of 2.02 euros. Net revenue was 1.64 billion euros, up from 1.54 billion euros in the year-ago period, but below consensus of 1.65 billion euros. Ferrari shares tumbled past 7%.

Ferrari N.V. stock declined after the company reported its third-quarter print and guidance.

The company reported fiscal third-quarter 2024 sales growth of 6.5% year-on-year to 1.644 billion euros, beating the analyst consensus estimate of 1.639 billion euros.

Adjusted EPS of 2.08 euros beat the consensus estimate of 1.99 euros.

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Revenue from cars and spare parts rose 5.2% year over year, and Sponsorship, commercial, and brand revenues increased by 20.4%. Total shipments declined by 2% year over year to 3,383 units.

Adjusted EBITDA rose 7% Y/Y to 638 million euros, and the margin expanded 20 basis points Y/Y to 38.8%.

Adjusted net profit for the quarter increased 13% to 375 million euros.

Operating cash flow totaled 587 million euros with a 338 million euros free cash flow.

As of September, the company's net industrial debt was 246 million euros, compared to 441 million euros at the end of June.

Ferrari held 1.53 billion euros in cash and equivalents as of September.

Ferrari's third-quarter results reflect strong growth, driven by a diverse product mix and increased customization, according to CEO Benedetto Vigna. He highlighted Ferrari's adherence to 2022 Capital Markets Day commitments, including sustained order visibility through 2026, ongoing product and process innovation, and progress toward carbon neutrality with the early shutdown of Maranello's gas-fueled plant.

Outlook: Ferrari expects fiscal 2024 net revenues to be greater than 6.55 billion euros (prior >€6.4 billion) against an estimate of 6.65 billion euros.

The company expects fiscal 2024 adjusted EPS of greater than or equal to 7.90 euros (prior greater than 7.50 euros) versus an estimate of 8.15 euros. Adjusted EBITDA of greater than 2.50 billion euros (prior 2.45 billion euros) with a margin of greater than 38%.

Ferrari stock gained 41% year-to-date, but fell 7% after the earnings print.

Price Action: RACE stock is down 7.09% at $442.32 at the last check on Tuesday.

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust was up 0.1% and the actively traded Invesco QQQ Trust was 0.3% higher in Tuesday's premarket activity as US citizens head to polling stations for the 2024 presidential elections.

US stock futures also edged higher, with S&P 500 Index futures up 0.1%, Dow Jones Industrial Average futures advancing 0.1%, and Nasdaq futures gaining 0.3% before the start of regular trading.

September's international trade in goods and services bulletin will be released at 8:30 am ET, followed by the ISM services index for October at 10 am ET.

In premarket activity, bitcoin was up by 2.2% and the cryptocurrency fund ProShares Bitcoin Strategy ETF was 2.3% higher.

Power Play:

Technology

Technology Select Sector SPDR Fund advanced 0.4%, and the iShares US Technology ETF was 0.03% higher, while the iShares Expanded Tech Sector ETF was up 0.2%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF was down 0.4%, while the iShares Semiconductor ETF rose by 0.4%.

Marqeta shares were down nearly 39% in recent Tuesday premarket activity after the company reported a Q3 net loss late Monday.

Winners and Losers:

Industrial

Industrial Select Sector SPDR Fund , the Vanguard Industrials Index Fund , and the iShares US Industrials ETF were inactive.

Timken stock was down 5.2% before the opening bell after the company reported lower Q3 adjusted earnings and net sales.

Consumer

The Consumer Staples Select Sector SPDR Fund was down 0.02%, while the Vanguard Consumer Staples Fund was inactive. The iShares US Consumer Staples ETF was inactive, and the Consumer Discretionary Select Sector SPDR Fund gained 0.3%. The VanEck Retail ETF and the SPDR S&P Retail ETF were inactive.

Ferrari shares were down 3.2% pre-bell after the company reported lower-than-expected Q3 net revenue.

Energy

The iShares US Energy ETF was inactive, while the Energy Select Sector SPDR Fund was up by 0.1%.

Marathon Petroleum stock was up 2.9% before Tuesday's opening bell after the company reported forecast-beating Q3 adjusted earnings and revenue.

Health Care

The Health Care Select Sector SPDR Fund advanced 0.2%. The Vanguard Health Care Index Fund , the iShares US Healthcare ETF , and the iShares Biotechnology ETF were inactive.

Fresenius Medical Care stock was up 1.7% premarket after the company reported higher Q3 earnings.

Financial

Financial Select Sector SPDR Fund advanced 0.04%. Direxion Daily Financial Bull 3X Shares was up 0.3%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares was 0.1% lower.

Broadridge Financial Solutions shares were down 1.4% pre-bell Tuesday after the company reported lower fiscal Q1 adjusted earnings and revenue.

Commodities

Front-month US West Texas Intermediate crude oil rose by 0.6% to $71.92 per barrel on the New York Mercantile Exchange. Natural gas fell 0.6% to $2.76 per 1 million British Thermal Units. United States Oil Fund was up 0.4%, while the United States Natural Gas Fund lost 0.1%.

Gold futures for December advanced 0.1% to $2,749.50 an ounce on the Comex, while silver futures gained 0.3% to reach $32.72 an ounce. SPDR Gold Shares increased by 0.1%, and iShares Silver Trust was 0.3% higher.