Shares of UK-based Aston Martin Global Holdings PLC (GB:AML) fell sharply after the company downgraded its full-year profit forecast for 2024. The car manufacturer now expects adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in the range of £270 million to £280 million in 2024, falling short of last year’s £305.9 million. The downgrade marks the company’s second profit warning. AML shares declined by nearly 5% as of writing.
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Before this, in September, Aston Martin announced a downward revision to its FY24 profit outlook, citing supply chain disruptions and weaker sales in China.
Aston Martin is famous for its luxury sports cars and iconic models such as the Vantage, DB11, DBS, DBX, and Valkyrie, among others.
Double Trouble: Aston Martin Cuts Profit Forecast Again
Aston Martin cut its profit forecast this time due to a slight delay in delivering its exclusive Valiant models. The company now expects to deliver approximately half of its 38 Valiant model orders by year-end, falling short of its earlier forecast to complete the majority of orders. The remaining deliveries are now scheduled for early 2025, aligning with the company’s plans to meet its FY25 targets.
For FY25, the company remains committed to its previously set targets, which include approximately £2 billion in revenue and around £500 million in adjusted EBITDA.
Aston Martin Boosts Finances with New Fundraising
Following its profit warning, Aston Martin today raised £210 million through the issuance of new shares and debt to strengthen its financial position. The company disclosed that it had raised £100 million through new debt and secured £111 million from investors purchasing shares at 100p each, a 7.3% discount to Tuesday’s closing share price.
Is Aston Martin a Good Stock to Buy?
On TipRanks, AML stock has a Hold consensus rating based on five Holds, three Buys, and one Sell assigned in the last three months. At 140.63p, the average Aston Martin share price target implies an upside of 36.5% from the current level.
Year-to-date, AML stock declined by 52.3%.
