Aston Martin Lagonda – Full Year Expectations Remain On-Track

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Aston Martin Lagonda’s (LON:AML) revenue rose 27% to £295.9m in the first quarter. This reflected a 9% increase in volumes, driven by SUV models. This offset a 20% drop in GT/Sport models, and a 5% dip in higher-margin personalised Specials. Average selling prices (ASP) was up 19% from the same time last year, at £180,000.

Operating losses widened by around £3m, partly reflecting an increase in depreciation for physical and non-physical assets.

Overall performance for the quarter was in-line with expectations and guidance for the full year is unchanged. This includes delivering “significant growth in profitability compared to 2022”.

Aston Martin shares rose 1.8% following the announcement.

Aston Martin Lagonda’s Earnings

Aston Martin Lagonda has delivered a strong first quarter, with volumes and selling prices moving in the right direction. Customers are parting with £180,000 on average for an Aston Martin, and all without volumes falling.

This is testament to the power of high-end brands, and their resilience during downturns – the cost-of-living crisis isn’t holding Aston Martin’s core customers down.

Operating losses are widening though, partly because of the accelerated efforts for bringing new cars to market. Being first out the gate is no bad thing, but there’s always a level of risk involved and no guarantee this latest fleet will hit the mark.

The shares are very tough to value because of the lack of profit, which makes assessing the investment case more difficult. As any seasoned car owner will know, there can be a chasm between value and price.”

Article by Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown