Ferrari Tracks Lower Start After Missing Estimates (RACE)

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Last Update: 05-Nov-18 08:51 ET

Ferrari (RACE 117.53, -2.00, -1.67%) held a pre-market loss of 2.5% after missing earnings expectations and reaffirming guidance.

The manufacturer of luxury performance vehicles reported below-consensus third quarter earnings of EUR0.77 per share on revenue that edged up 0.2% year/year to EUR838 mln but was also shy of expectations.

Ferrari shipped 2,262 vehicles during the quarter, representing year/year growth of 10.6%. Shipments increased in every geographic region with sales of V12 models increasing 7.9% while shipments of V8 models grew 11.4%. V12 sales were driven by higher sales of the 812 Superfast while V8 sales were supported by sales of Ferrari Portofino.

Shipments to Europe, the Middle East, and Africa increased 11.3% year/year to 1,005 units, lifting the growth rate for the first nine months of the fiscal year to 8.3%. Shipments to the Americas grew 4.6% year/year to 770 units, which was roughly in-line with the rate observed earlier in the fiscal year.

Shipments to China, Hong Kong, and Taiwan increased 6.6% year/year to 162 units, but that represented a slowdown in growth, reducing the region's shipment growth rate for the first nine months of the fiscal year to 15.2% from 19.6% as of the six months ended June 30. Shipments to the rest of Asia-Pacific grew 27.5% year/year for the quarter to 325 units.

The company generated EUR100 mln of cash from industrial activities, down from EUR147 mln generated one year ago.

The third quarter shortfall did not deter the company from confirming its guidance for the fiscal year. The company expects to have shipped more than 9,000 vehicles by the end of the fiscal year with net revenue exceeding EUR3.4 bln. Adjusted EBITDA is expected to exceed or be equal to EUR1.1 bln.