Ferrari (RACE) Q3 2022 earnings beat estimates, automaker raises guidance

Ferrari CEO Benedetto Vigna poses for a photograph as Ferrari unveils a new lengthy term system, in Maranello, Italy, June 15, 2022.

Flavio Lo Scalzo | Reuters

Ferrari on Wednesday all over again lifted its steering for the whole yr soon after shipments, revenue and earnings for each share all rose by double-digit percentages all through the third quarter.

Continue to, Ferrari’s earnings margin fell as it shipped a a lot less financially rewarding blend of autos all through the period of time.

The Italian supercar maker now expects earnings of about 5 billion euros and modified earnings for each share of about 5 euros for the total 12 months. It past lifted its 2022 guidance in August, telling investors to be expecting profits of about 4.9 billion euros and altered earnings for every share of among 4.80 euros and 4.90 euros for the yr.

Ferrari shares fell about 2% in early buying and selling. Right here are the essential numbers from the 3rd-quarter earnings report:

  • Earnings for each share: 1.23 euros vs. 1.18 euros expected by Wall Street analysts polled by Refinitiv.
  • Revenue: 1.25 billion euros vs. Wall Street’s estimate of 1.16 billion euros for every Refinitiv.

“Right now, we keep on to manage an outstanding order ebook: with the exception of few versions, our complete vary is marketed out,” CEO Benedetto Vigna reported in a assertion.

Ferrari transported 3,188 automobiles in the 3rd quarter, up 16% from a 12 months ago. The enhance in deliveries was driven by the ramp-up in creation of the 6-cylinder hybrid 296 GTB sports activities auto, Ferrari mentioned. But people gains were partially offset by reduce shipments of the bigger-priced eight-cylinder hybrid SF90.

The adjust in blend led to a decrease in Ferrari’s EBIT (earnings right before interest and tax) margin, to 23.9% from 25.7% in the third quarter of 2021.

Ferrari’s new-product pipeline remains sturdy. The enterprise unveiled its 1st-ever SUV, the Purosangue, in September. Deliveries will start off in mid-2023. An open-roof variation of the 296 sports activities car or truck, called 296 GTS, is also predicted to get started transport in the initially 50 % of next calendar year.

Ferrari Purosangue

Resource: Ferrari

Ferrari has been mainly unaffected by the world offer-chain troubles that have hampered more substantial automakers’ creation, as its full output volumes are compact.

In the meantime, demand from customers has remained solid. The firm’s rich shoppers are a lot less impacted by the around-phrase financial fears that may well be major mainstream people to trim investing.