Autos

Ferrari shares drop 10% after new CEO calls financial targets 'aspirational'

Key Points
  • Ferrari shares tanked after its new CEO called its financial targets to 2022 "aspirational."
  • CEO Louis Camilleri made the comment in a conference call with analysts to discuss otherwise strong second-quarter earnings.
  • Ferrari named Camilleri as its new CEO in July after Sergio Marchionne stepped down for health reasons. Marchionne passed away last week. 
Ferrari dealership.
Akos stiller | Bloomberg | Getty Images

Ferrari shares dropped about 10 percent on Wednesday after its new CEO said its financial targets to 2022 are "aspirational."

Louis Camilleri made this remark in a conference call with analysts to discuss second-quarter earnings results, released Wednesday before the bell. The company announced in February that it would double core earnings to 2 billion euros by 2022.

Before the conference call, the company's stock rose slightly before paring gains following Ferrari's strong second-quarter results. The automaker reported 84 euro cents in adjusted diluted earnings per share, up 17 percent from last year's numbers. Although revenues were down 1.6 percent from last year's second quarter, the company said in its release that the 906 million euros in sales for its second quarter was actually up 1.4 percent if currency fluctuations were eliminated.

Ferrari named Camilleri, former chairman and CEO of Philip Morris International and a Ferrari board member, as CEO in July. This was his first time presenting earnings for the Italian company.

Camilleri was named CEO after Sergio Marchionne suffered complications following a surgery. Marchionne, who was also CEO of Fiat Chrysler, died on July 25.

Ferrari shares are now on pace for its worst day since February 2016. The company will announce its plan and initiatives to achieve its 2022 targets on Sept. 17 and 18.