Italian luxury automaker Ferrari (RACE) reported third-quarter financial results on Tuesday in line with expectations, but shares fell on Tuesday after vehicle deliveries were weaker than a year ago. Ferrari expects stronger sales in the fourth quarter to boost full-year results.
In the quarter, Maranello-based Ferrari reported revenue of 1.64 billion euros ($1.79 billion), in line with expectations compiled by Bloomberg and up 7% from a year earlier. Third-quarter adjusted EPS of €2.08 ($2.27), also in line with expectations, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of €638 million ($695 million). USD), up 7%, slightly above expectations. .
Despite sales and profit growth, deliveries in the quarter were 3,383 units, down 2% year over year. Although sales increased slightly in most regions (led by the Americas at 4%), shipments in China decreased by 22%.
Ferrari shares, which trade on the New York Stock Exchange, fell more than 7% in midday trading.
Despite somewhat lackluster third-quarter results and lower car deliveries, Ferrari reaffirmed its full-year outlook. Ferrari expects sales of 6.55 billion euros ($7.14 billion) and adjusted EBITDA of 2.5 billion euros ($2.7 billion) this year, as demand in other regions and its product portfolio continue to drive performance. It is expected to reach $30 million.
Ferrari CEO Benedetto Vigna said: “The third quarter showed that Ferrari’s performance is growing again, driven by a strong product mix and a push towards personalization. “This confirms our commitment to delivering on the commitments we made at Capital Markets Day in 2019.” Get exceptional order book visibility through 2026.
Ferrari said deliveries in the quarter were led by the Ferrari Purosangue SUV, Roma Spider convertible and 296 GTS sports car. The company noted that deliveries of the SF90 XX Stradale supercar also increased during the quarter, with deliveries of its sister car, the SF90 XX Spider, beginning.
Among Ferrari’s more luxurious vehicles, as expected, customer allocation for the ultra-luxury Daytona SP3 (MSRP $2.23 million) increased year over year. The company also debuted its latest hypercar, the F80, last month, and despite a price tag of 3.6 million euros ($3.9 million), the 799 is already all the rage.
Ferrari is following in the footsteps of European automakers such as Mercedes and Porsche, which are experiencing sluggish sales as demand for luxury goods slows in some parts of the world, particularly in Asia.
For Porsche, 25% of its sales (60,747 units) came from China through the third quarter a year ago. Sales in the same period this year fell 29% to 43,280 units.
Fortunately for Ferrari, China only accounts for 8.3% of its total deliveries, whereas a year ago Mercedes’ shipments from the region accounted for a whopping 37%.
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