Aston Martin (AML) Share Price Crashed 16.5% on High Q3 Losses

The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price crashed 16.53% after releasing its Q3 2023 financial results for the three months to 30 September 2023. The company generated revenues worth £362.1 million and incurred a loss of £48.4 million.

Both figures missed analysts' expectations of £370 million in revenues and an adjusted operating loss of £38 million. The company attributed its revenue miss to delays in producing its DB12 ultra luxury sports car, whose deliveries began during the quarter. 

The ultra-luxury car manufacturer’s performance over the past nine months has seen it generate revenue worth £1,040 million, marking a 21% increase from last year. The company’s gross profits YTD have also risen 30% to £371 million from £286 million during the nine months in 2022. 

The surge in gross profit can be attributed primarily to several vital factors. These include increased wholesale volumes and higher average selling prices (ASPs) within the Core product portfolio. Additionally, favourable mix dynamics resulting from the success of the DBS 770 Ultimate product and strong momentum from Specials contributed to this growth. 

Aston Martin’s core average selling price (ASP) of £184,000 YTD in 2023 represented a 6% increase from £173,000 in a similar period last year. However, the core ASP for Q3 2023 was £183,000, down 3% from £189,000 in Q3 2022. 

The company lowered its production 2023 guidance from 7,000 units to 6,700 units due to the DB12 production issues. However, the car manufacturer maintained its full-year forecast for 2024/25, expecting to generate £2 billion in revenue and £500 million in adjusted EBITDA.

Lawrence Stroll, Aston Martin’s Executive Chairman, commented: “Our 110^th anniversary year continues to be a fantastic one for the Company, and we are delighted with the strategic and financial progress we have made during the first nine months of 2023.  Our volumes, pricing, gross margins and EBITDA are showing strong improvement, and we are delivering an accelerated industrial turnaround. The launch of the DB12, which has seen extraordinary demand, is driving a reappraisal of Aston Martin amongst new audiences, with 55% of initial DB12 customers new to the brand, and when we launch our second next-generation sports car in Q1 next year, we expect a similarly resounding response.”

Aston Martin (AML) share price. 

The Aston Martin (AML) share price crashed 16.53% to trade at 181.79p from Tuesday’s closing price of 217.80p.