Ferrari Revenue, Profit Beat Forecasts But Shipments Underwhelm; Shares Fall — Update
By David Sachs
Ferrari's profit and revenue jumped in the first quarter, beating forecasts as favorable pricing and customization sales offset underwhelming car shipments.
The Italian luxury sports-car maker said Tuesday that it shipped seven fewer vehicles in the first quarter than it did a year prior, with a 20% drop in its China-focused region. Quarterly shipments of 3,560 trailed expectations by 57, Bernstein analysts said in a note.
But revenue, earnings and aftertax profit each grew at a double-digit rate, driven by pricing and more shipments in the higher-margin Americas region, Ferrari said.
At 1205 GMT, Ferrari shares were down 4.5% to EUR379.60.
"The fall in the stock price in the immediate aftermath of the earnings probably reflects some disappointment that Ferrari did not raise FY24 guidance, but historically Ferrari never does this at the 1Q stage," Bernstein analysts said in a note.
A bigger contribution from customizations--personal touches paid for by consumers--also aided growth, as did a richer product mix anchored by the Daytona SP3.
"Our value over volume strategy continues to be successful," said CEO Benedetto Vigna.
Aftertax profit rose 19% on year to 352 million euros ($379.1 million), ahead of the Visible Alpha consensus of EUR334.3 million.
Ferrari's net revenue finished the period at EUR1.585 billion, jumping 11% on growth from its cars, spare parts and sponsorship divisions. Revenue beat the Visible Alpha consensus of EUR1.57 billion.
The company's earnings before interest and taxes margin--a key metric for the high-end carmaker--was 27.9% compared with 26.9% a year prior. EBIT rose 15% to EUR442 million, and finished ahead of the Visible Alpha forecast of EUR437.8 million.
Ferrari backed its full-year guidance.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
May 07, 2024 08:28 ET (12:28 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?
-
8 Stock Picks in the Apparel Industry
-
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing