Ferrari Now Has a Bigger Value Than General Motors and Ford After Reporting Q1 Results

Shares of Ferrari were exploding on Monday as much as 7% on strong first quarter earnings. The company saw its market cap top $30 billion, making the company worth more than Ford and General Motors.

The Italy-based sports car maker reported better-than-expected earnings despite shutting its factory in March. Total shipments of cars increased 5% to 2,738 during the quarter. Revenue fell 1% to $1.02 billion which was a lot better than the $852 billion that analysts had expected.

Wall Street also learned that Ferrari has reopened its factories in Maranello and Modena this week and are expected to be at full production again on Friday.

Last month Ferrari also announced a dividend of 1.13 euros ($1.23) per share, an increase of 10%. In its earnings announcement, Ferrari said it was lowering its estimates for net revenue to between 3.4 billion euros and 3.6 billion euros ($3.7 billion to $3.9 billion), from 4.1 billion euros ($4.5 billion) previously. The company also cut its forecast for adjusted earnings before interest, taxes, depreciation and amortization to a top range of 1.2 billion euros ($1.31 billion) from a top range of 1.43 billion euros ($1.56 billion).

Ferrari CEO Louis Camilleri said there had been “several cancellations” of car orders in the U.S. and Australia, but “so far there are no red lights flashing in any geography.”

Camilleri said on the earnings call, “We have often claimed that while we are not immune to economic or other brutal shocks, we are significantly more resilient than most. This crisis will serve to hopefully underscore this claim. Our faith rests on the strength of our iconic brand equity, the skills, determination and fortitude of our organization, our technological innovation and design superiority, our close and vigorous relationship with our suppliers, and the quality of our dealer network, and ultimately, the loyalty of our customers, which translates into a strong order book.”

Disclaimer: We have no position in Ferrari NV (NYSE: RACE) and have not been compensated for this article.