MILAN – On Thursday, Ferrari (NYSE: RACE) raised its outlook for its full-year revenues and core earnings, as the luxury sports car maker beat estimates in the second quarter thanks to more expensive models in its product range and increased demand for personal touches on cars.
The Italian company said it saw its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) growing this year to at least 2.50 billion euros ($2.70 billion), versus a previous forecast of at least 2.45 billion euros.
“Our net revenues and profitability were up double-digit, sustained by the enrichment of the product mix and the increased demand for personalizations, which led us to upgrade our 2024 guidance,” CEO Benedetto Vigna said in a statement.
After the results were published, Milan-listed shares in the company extended previous slight gains and were up 5.7% by 1120 GMT.
In contrast, Porsche last month cut its sales and profit guidance due to an unexpected aluminum alloy supply shortage, hammering its shares.
“Ferrari handsomely beat today pretty much across the board,” Bernstein analysts said in a note.
“It reinforces our contention that there is only one Ferrari …. sitting at the pinnacles”.
In the April-June period, Ferrari’s (NYSE: RACE) adjusted EBITDA grew 14% to 669 million euros, slightly topping analyst expectations of 650 million euros in a Reuters poll.
The company known for its prancing horse logo also generated 121 million euros of cash in the quarter.
It said pricing power contributed 122 million euros to quarterly earnings, supported by demand for the 2-million euro, 12-cylinder Daytona SP3, as well as a “few sales” of the limited series, track-only 499P Modificata, which costs 5.1 million euros.
Bernstein analysts also mentioned the Purosangue four-seater and the first few deliveries of the SF90 XX Stradale hybrid model.
Demand from customers for personalizations – both inside and outside the car – boosted the results too, along with a strong performance in the Americas.
In 2023, personalizations accounted for around 19% of Ferrari’s 6 billion euros of revenue, mainly relating to paint, liveries, and the use of carbon.
($1 = 0.9273 euros)
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
