Ferrari (RACE 117.95, -2.05) has given up 1.7% despite beating third quarter expectations.
The specialty automaker reported above-consensus third quarter earnings of EUR0.74 per share on a 6.8% year-over-year increase in revenue to EUR836 million, which also exceeded expectations.
Revenue from cars and spare parts grew 12.7% to EUR605 million. This growth was partially offset by a 10.0% decline in engines revenue (to EUR88 million), a 1.0% in Sponsorship, commercial, and brand revenue (to EUR124 million), and a 19.0% decline in other revenue (to EUR19 million).
Ferrari's revenue growth was driven by a 3.4% year-over-year increase in shipments, which grew to 2,046 from 1,978 one year ago.
Shipments to Europe, Middle East, and Africa increased 5.1% to 903 with double-digit growth in shipments to France and Italy. Shipments to the Americas increased 5.0% to 736. Asia-Pacific was mixed as shipments to China, Hong Kong, and Taiwan declined 15.6% year-over-year to 152 while shipments to the rest of Asia-Pacific increased 7.1% to 255.
The overall shipment growth was due to a 27% increase in sales of V12 models while sales of V8 models declined modestly due to the phase-out of Ferrari California T. Growth in V12 sales was due to demand for GTC4Lusso and LaFerrari Aperta. The recently-released 812 Superfast has a waitlist that extends past 2018 while Portofino deliveries will begin in 2018.
Scuderia Ferrari renewed its racing agreements with Sebastian Vettel for seasons 2018, 2019, and 2020 while renewing its agreement with Kimi Raikkonen for the 2018 racing season.
The company boosted its outlook, expecting that revenue for the fiscal year will reach EUR3.40 billion, up from previous guidance for revenue of EUR3.30 billion. The new guidance is in line with market expectations. Ferrari expects to ship 8,400 vehicles and adjusted EBITDA is expected to hit EUR1 billion.