(Bloomberg) -- Aston Martin Lagonda's waning cash pile was expected to be the focus of the company's third-quarter earnings report, but the sale of six classic-model remakes ended up stealing the show.
The “unexpected” deals for six DB4 GT Zagato Continuations models were behind a better-than-expected quarterly Ebit figure, contributing between 1 million pounds ($1.3 million) and 1.5 million pounds each, according to Jefferies analyst Philippe Jean Houchois, who spoke by phone.
Aston Martin has been dogged by questions about its capital position since going public last year. On Thursday, the shares climbed as much as 10%, a record intraday gain. The stock remains down 78% since the stock's initial public offering.
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Cash-flow was in line with Jefferies's estimate and while sales and profits declined year-on-year, the numbers “weren't so bad,” given tough comparatives, Houchois added. Jefferies has a hold rating on the shares. The company also cut delivery targets for the year, which will help to lower inventory levels.
Aston Martin is still the worst performer on the mid-cap FTSE 250 benchmark this year, after slashing its full-year sales forecast in July.
To contact the reporter on this story: Joe Easton in London at jeaston7@bloomberg.net
To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Monica Houston-Waesch
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