Aston Martin races past second quarter expectations

By Yadarisa Shabong

(Reuters) -British luxury carmaker Aston Martin’s second-quarter results beat market expectations on Wednesday, powered by higher prices and demand for its DBX707 sports utility vehicle and limited edition V12 Vantage Roadster, sending shares 6% higher.

Demand for its new ‘Valour’ model, launched for the brand’s 110th anniversary and inspired by its racing cars of the 1970s, has been “unprecedented”, CEO Amedeo Felisa said in a statement.

“Within two weeks all 110 units have been sold, with a growing waiting list,” Felisa said of the special edition car, which is expected to start deliveries in the fourth quarter.

Its next-generation sports car DB12, launched in May, has also sold out and customer deliveries are starting this quarter, the company said.

“Focus will now shift to the DB12 and profitability of the core product portfolio,” JP Morgan analysts wrote in a note.

Aston Martin kept its 2023 forecast for volumes of about 7,000 vehicles and an adjusted core profit margin of about 20%.

Fictional character James Bond’s car brand of choice has had a tough time since floating in 2018. However, it has been more upbeat about its outlook over the past few months and plans to bolster cash and margins by rolling out next-generation sports cars and limited editions in the second half of 2023.

In the past couple of months, Aston Martin has struck deals with China’s Geely and U.S. electric vehicle (EV) maker Lucid Group as the company invests in electrification.

Aston Martin reported an adjusted operating loss of 38.9 million pounds ($50.2 million) and revenue of 381.5 million pounds in the quarter to June.

Analysts on average had expected an adjusted operating loss of 51 million pounds on revenue of 344 million pounds, according to a company-compiled consensus.

Aston Martin said it was also on track to meet its medium-term financial targets.

($1 = 0.7757 pounds)