Aston Martin Lagonda Shares Drop

Shares of Aston Martin Lagonda (AML.L) fell early on Wednesday as the British luxury carmaker lowered its guidance for full-year operating earnings margin, saying a “challenging” external environment and macro-economic uncertainties had “worsened.”

The Gaydon, England-based firm, whose cars have featured in James Bond films, said in a trading update for the three months that ended June 30 that wholesales slumped by 22% and 28% year-on-year in the UK and Europe, the Middle East, and Africa, respectively. This compares with annualized declines of 9% and 4% in the number of units, respectively, in the first quarter.

In the Asia Pacific region, wholesales rose by 17%, compared to a 30% annualized growth rate in the first quarter, and the Americas saw wholesale growth of 83%.

Given that Aston Martin expects the softness to continue for the rest of the year and is, therefore, planning “prudently for 2020,” the firm said expectations for wholesales have been revised to 6,300-6,500 vehicles for the full year 2019. This is, however, below the 7,100 – 7,300 range of estimates set out in February.

“We will continue to monitor the external environment as we head towards 2020,” the company further noted in its update.

In line with lower projected sales, the firm warned that its adjusted earnings before interest, tax, depreciation, and amortization margin will decline to about 20% from an earlier forecast of 24%, and the adjusted operating profit margin — which excludes depreciation and amortization — will also drop to 8% as opposed to a previous guidance of 13%.