By Mauro Orru
Ferrari posted higher sales and earnings in the third quarter and said it was more confident that it would hit its annual guidance, racing ahead of other car makers that are grappling with weakening sales amid a slower-than-expected shift to electric vehicles and challenges in China.
The Italian luxury sports-car maker reported 1.64 billion euros ($1.78 billion) in sales, up 7% on year even though the company shipped 3,383 vehicles to customers--76 fewer than a year earlier. Analysts had forecast nearly 1.66 billion euros in sales and about 3,453 shipments, according to consensus estimates by Visible Alpha.
The company said the Ferrari Purosangue, Roma Spider and 296 GTS models led deliveries in the quarter, while shipments of the SF90 XX Stradale also increased. Meanwhile, Ferrari said it started delivering the first few models of the SF90 XX Spider.
Shipments were up 2% in Europe, the Middle East and Africa and down 2% in the Americas, Ferrari's two largest regional markets. Mainland China, Hong Kong and Taiwan logged a 29% contraction in shipments, but the rest of the Asia-Pacific recorded 6% growth.
Despite lower shipments globally, Ferrari said revenue increased in the quarter on a richer product and country mix as well as increased customization requests from clients.
Ferrari, which sells cars to more exclusive clients than many other auto makers, has been relatively insulated from a host of challenges plaguing much of the industry. A slow electric-vehicle market and competition from local manufacturers in China forced several car markers to cut guidance this year as they grapple with weak sales.
Chief Executive Benedetto Vigna said Ferrari had exceptional order-book visibility well into 2026, injecting renewed confidence in guidance that the company upgraded in August.
Ferrari shares slipped about 4% in European afternoon trading after some metrics came in slightly below expectations, but the stock is up roughly 35% over the last 12 months.
After-tax profit in the quarter grew to 375 million euros from 332 million euros. Analysts had forecast after-tax profit of 358.3 million euros, according to Visible Alpha.
Adjusted earnings before interest and taxes--one of Ferrari's preferred measures of profitability--increased to 467 million euros from 423 million euros, generating a 28.4% margin. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization rose to 638 million euros from 595 million euros, generating a 38.8% margin.
Analysts had forecast adjusted EBIT of 467.56 million euros and adjusted Ebitda of 645.70 million euros.
For the year, Ferrari said it continued to expect sales of more than 6.55 billion euros, adjusted EBIT of at least 1.82 billion euros and adjusted Ebitda of at least 2.50 billion euros.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
November 05, 2024 07:43 ET (12:43 GMT)
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