Shares of Ferrari (RACE) fell on Tuesday after the Italian luxury car maker reported third-quarter results in line with expectations, but deliveries fell compared to a year ago. Ferrari expects stronger sales in the fourth quarter to boost full-year results.
For the quarter, Maranello-based Ferrari reported revenue of €1.64 billion ($1.79 billion), matching Bloomberg estimates and up 7% from a year ago. Adjusted earnings per share for the third quarter were €2.08 ($2.27), also in line with estimates, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was €638 million ($695). million), up 7% and slightly ahead of Street estimates. .
Despite sales and profit growth, deliveries in the quarter fell 2% from a year ago to 3,383 units. While most regions saw slight sales growth (led by the Americas at 4%), Chinese shipments fell 22%.
Ferrari stock traded on the NYSE closed 7.36% lower on Tuesday.
Even with the somewhat mediocre third quarter results and a drop in deliveries, Ferrari confirmed its expectations for the full year. Ferrari still sees sales for the year rising to €6.55 billion ($7.14 billion) with an adjusted EBITDA of €2.50 billion ($2.73 billion), as the automaker sees demand increasing in other regions and its product portfolio drives results.
“The third quarter continues to demonstrate growing results for Ferrari, driven by a strong product mix and increased personalization,” said Benedetto Vigna, CEO of Ferrari. “It reaffirms our commitment to deliver on the promises we made at our 2022 Capital Markets Day. , together with the exceptional visibility of the order book well into 2026.
The Ferrari Purosangue SUV, Roma Spider convertible and 296 GTS sports car drove deliveries in the quarter, Ferrari said. The company noted that supercar deliveries of the SF90 XX Stradale also increased in the quarter, while deliveries of the sister SF90 XX Spider began.
For Ferrari’s even more expensive cars, customer allocations for the ultra-exclusive Daytona SP3 (MSRP $2.23 million) increased as expected from the previous year. The company also debuted its latest hypercar last month, the F80, with all 799 already requested despite being priced at €3.6 million, or $3.9 million.
Ferrari follows a string of other European carmakers such as Mercedes, Porsche and others that are experiencing a decline in sales, especially in Asia, while demand for luxury declines in some parts of the world.
Porsche saw 25% of its sales come from China in the third quarter (60,747 units); those sales fell by 29% over the same period this year, to 43,280 units.
Fortunately for Ferrari, China is only responsible for 8.3% of all shipments, while Mercedes had a whopping 37% from the region a year ago.
