Posted on May 9, 2019.
From Automotive News
MILAN — Italian luxury carmaker Ferrari reported a 14 percent rise in first-quarter core earnings, driven by strong sales of its Portofino model and increased shipments in all regions.
The automaker stuck to its full-year financial targets.
Ferrari shares rose 4 percent to close on Tuesday at $137.70 in an otherwise down day on Wall Street.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at 311 million euros ($348 million) in January-March, above the average forecast of 284 million euros in a Reuters poll of analysts.
Net income surged 22 percent to 180 million euros.
Total revenue improved 13 percent to 940 million euros, topping the average estimate of 864 million euros. The company said total shipments rose 23 percent to 2,610 vehicles.
For 2019, Ferrari expects adjusted EBITDA to rise around 10 percent to 1.2-1.25 billion euros. Sales are seen growing more than 3 percent to top 3.5 billion euros.
Last year’s plan set a target for adjusted EBITDA in excess of 1.3 billion euros in 2020, but CEO Louis Camilleri said earlier this year he was “very bullish” and might raise the target, betting on new models and special editions at premium prices to lure customers.
Ferrari is starting to ship its first 488 Pista Spider models this quarter, while the new Ferrari Monza limited series will be shipped starting from fourth quarter.
“Ferrari’s first quarter results confirm it’s sailing far away from current auto industry trends,” IG Markets analyst Vincenzo Longo said. Ferrari is “reaffirming itself once again as luxury brand with a clear value added,” he said.
Current targets look “extremely conservative,” Morgan Stanley analysts said in a note.
