Ferrari posts accelerating core profits
Italian supercar maker's shipments soar but shares take a hit on unchanged full-year profit forecast
Ferrari on Monday reported an almost 5 per cent increase in third-quarter core earnings, helped strong sales of 8-cylinder and 12-cylinder models but stuck with its full-year profit forecast, which hit the company's shares.
Ferrari's shares, up 1 per cent just before the results were published, were down 1.3 per cent by 12.05 GMT.
The Italian supercar maker, spun off from parent Fiat Chrysler, has had a run of record earnings, helped by special edition models and a customisations programme.
Investors are looking for reassurance the company can maintain its strong growth achieved under late boss Sergio Marchionne, who more than doubled the value of the group since he took it public in 2015.
The unchanged forecast for 2018 adjusted earnings before interest, tax, depreciation and amortisation (ebitda) for at least €1.1 billion (Dh4.51bn) leaves Ferrari with "an undemanding fourth quarter [flat year-on-year] to meet the low end of this year's guide", Evercore ISI analyst George Galliers said in a note.
Adjusted ebitda for July-September period rose to €278 million from €266m, compared with a €282m analysts consensus, according to according to data from Refinitiv.
Revenues were about flat at €838m, slightly below expectations, while shipments were up 10.6 per cent, helped by strong sales of 8-cylinder models such as the Portofino and 12-cylinder models such as the 812 Superfast. This month the car maker unveiled the Monza SP1 at the Paris car show.
The third quarter is the second set of results presented by new Ferrari boss Louis Camilleri, who took over in July after Marchionne's death.
The sudden change at the top jolted shareholders who had expected Marchionne to remain at the helm until 2021.
But investors welcomed a mid-term plan presented by Mr Camilleri in September, under which he promised 15 new models, including hybrids, a 4x4 and special editions in a drive to almost double earnings to between €1.8bn to €2bn by 2022.
Updated: November 5, 2018 05:20 PM