Ferrari Hikes Guidance After Earnings Beat Forecasts on Pricier Model Sales — Update

By David Sachs

Ferrari raised its earnings targets for the year after second-quarter income jumped on robust sales of its Daytona SP3 and higher demand for customization, lifting shares.

The Italian luxury sports-car maker said Thursday that shipments rose and revenue climbed with help from a good pricing position and sales tilted toward its more profitable vehicles.

Ferrari beat market expectations in several key categories.

At 1145 GMT, shares were up 5.3% at EUR400.40.

Revenue rose 16% on year to EUR1.71 billion euros ($1.85 billion), helped by sales of the limited-edition Daytona SP3 and the 499P Modificata models. The sum beat market expectations of EUR1.62 billion, according to analysts polled by FactSet.

Ferrari, which keeps production limits to boost the value of its collector-item cars, posted second-quarter shipments of 3,484, an increase of 3%. Shipments came in over the Visible Alpha forecast of 3,471. Hybrid cars comprised nearly half of the company's shipments in the quarter, the company said.

The company raised nearly all of its full-year targets, including revenue, profitability, earnings per share and free cash flow.

After-tax profit jumped 24% to EUR413 million, Ferrari said. Analysts had forecast after-tax income at EUR359 million, according to FactSet.

Net profit rose to EUR412 million compared with EUR333 million in the second quarter of last year, the company said.

On an adjusted basis, earnings before interest and taxes finished the quarter at EUR511 million, up 17% from a year prior. Analysts expected adjusted EBIT at EUR472 million.

Adjusted EBIT margin hit 29.9%, compared with a margin of 29.7% in the second quarter of last year, the company said.

Adjusted earnings before interest, taxes, depreciation and amortization finished the quarter at EUR669 million, 14% ahead of the prior-year period and topping analyst expectations of EUR639 million, according to FactSet. The Ebitda margin was 39.1%.

Ferrari raised its full-year revenue target to more than EUR6.55 billion from a minimum of EUR6.4 billion previously.

It now sees adjusted EBIT finishing the year at EUR1.82 billion, at least, versus an initial goal of at least EUR 1.77 billion. Ferrari hiked its adjusted EBIT margin goal to 27.5% from at least 27%.

The carmaker also ticked up its adjusted Ebitda goal to at least EUR2.50 billion from EUR2.45 billion previously.

Ferrari raised its minimum adjusted diluted earnings per share projection to EUR7.90 from EUR7.50.

It also sharpened its industrial free cash flow goal to a maximum of EUR950 million after originally projecting cash of more than EUR900 million.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

August 01, 2024 08:16 ET (12:16 GMT)

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