Ferrari said on Wednesday it was improving its forecasts for full-year results, including for core earnings, after beating expectations in the third quarter, but took a more cautious tone on margins.
Ferrari said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) would grow this year to more than €1.73bn (about R31bn), vs an already improved forecast of €1.70bn to €1.73bn (about R30.48bn to R31bn) it provided three months ago.
But the company added margin on adjusted EBITDA was now seen at about 35% for this year, vs a previous guidance of more than 35%.
It said industrial costs and research & development expenses weighed for an additional €34m (roughly R612,738,792) on its core result in the past quarter mainly due to higher depreciation and amortisation and cost inflation.
Milan-listed shares in the company fell as much as 3.5% after results were released. By 1345 GMT they were down 2.4%.
Analysts at Morgan Stanley said in a note it would have been a surprise if Ferrari had not improved its forecasts for this year. “Full-year 2023 should see tailwinds from volume, price/mix and forex,” they added.
In the third quarter, adjusted EBITDA rose 17% to €435m (about R7,815,363,354), supported by a double-digit increase in shipments. The result topped analyst expectations of €418m (roughly R7,509,361,640), according to a Reuters poll.
Foreign exchange, including hedging contracts, had a positive effect on the result, while price mix weighed.
“We continue to manage an outstanding order book: with the exception of few models, our entire range is sold out,” Ferrari CEO Benedetto Vigna said.
Shipments rose in all regions except in EMEA [Europe, Middle East and Africa] in the July-September period, driven by the ramp-up phase of the six-cylinder hybrid 296 GTB and of the 12-cylinder limited series 812 Competizione model.
With a 73% increase, the China, Hong Kong and Taiwan region scored the largest shipment growth in the quarter.
Bullish Q3 results see Ferrari lift annual forecasts
Image: 123RF/massimocampanari
Ferrari said on Wednesday it was improving its forecasts for full-year results, including for core earnings, after beating expectations in the third quarter, but took a more cautious tone on margins.
Ferrari said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) would grow this year to more than €1.73bn (about R31bn), vs an already improved forecast of €1.70bn to €1.73bn (about R30.48bn to R31bn) it provided three months ago.
But the company added margin on adjusted EBITDA was now seen at about 35% for this year, vs a previous guidance of more than 35%.
It said industrial costs and research & development expenses weighed for an additional €34m (roughly R612,738,792) on its core result in the past quarter mainly due to higher depreciation and amortisation and cost inflation.
Milan-listed shares in the company fell as much as 3.5% after results were released. By 1345 GMT they were down 2.4%.
Analysts at Morgan Stanley said in a note it would have been a surprise if Ferrari had not improved its forecasts for this year. “Full-year 2023 should see tailwinds from volume, price/mix and forex,” they added.
In the third quarter, adjusted EBITDA rose 17% to €435m (about R7,815,363,354), supported by a double-digit increase in shipments. The result topped analyst expectations of €418m (roughly R7,509,361,640), according to a Reuters poll.
Foreign exchange, including hedging contracts, had a positive effect on the result, while price mix weighed.
“We continue to manage an outstanding order book: with the exception of few models, our entire range is sold out,” Ferrari CEO Benedetto Vigna said.
Shipments rose in all regions except in EMEA [Europe, Middle East and Africa] in the July-September period, driven by the ramp-up phase of the six-cylinder hybrid 296 GTB and of the 12-cylinder limited series 812 Competizione model.
With a 73% increase, the China, Hong Kong and Taiwan region scored the largest shipment growth in the quarter.
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