Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Will Investors Push The Ejector Seat On Aston Martin Following Q1 Results?

Published 13/05/2019, 10:51
Updated 21/10/2020, 09:15

The James Bond favourite almost immediately went off-road following last October’s IPO. Starting at £19.05, the car-marker eventually ended 2018 at £12.45, falling afoul of the market’s wider economic fears.

Its 2019 has been no better. Having briefly crept back to £13.75, the stock was slammed following February’s full year results, and hasn’t recovered since. Aston Martin Lagonda Global Holdings PLC now sits at a current trading price of £8.47, less than half its initial public offering.

The ironic thing about Aston Martin’s post-IPO performance is that 18% plunge the company suffered on the day of its full year results was in part caused by the IPO itself. Though total wholesale volumes rose 26% to 6441, allowing revenue to rise 25% to nearly £1.1 billion, it fell to a pre-tax loss of £68 million as its stock market launch cost the firm £136 million.

Further souring the statement was news that Aston Martin would be setting aside £30 million to cover a hard Brexit – sensible, but still not what investors want to hear.

As for its 2019 guidance, wholesales are set to be between 7100 and 7300, almost a 12% increase at the mid-point but a marked slowdown on the growth managed in 2018. Adjusted EBITDA is ‘expected to be lower year-on-year in the first half’ due to the non-repeat of income related to the selling of certain intellectual property. Investors will be after signs that the firm is on track when it reports on Wednesday.

Aston Martin Lagonda Global Holdings PLC (LON:AML) has a consensus rating of ‘Buy’ alongside an average target price of £14.77.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.