Key Takeaways
- Ferrari shares fell despite a first-quarter earnings beat as vehicle shipments were roughly flat compared to the prior-year period.
- The iconic automaker said improved product and country mixes helped boost vehicle and parts sales in the quarter.
- Shares fell 5% in intraday trading Tuesday.
Ferrari (RACE) shares fell in intraday trading Tuesday after the luxury car maker’s shipped vehicles were roughly flat in the first quarter, even as earnings topped expectations.
The Italian car manufacturer benefited from higher prices as shipments at 3,560 units were “substantially flat” versus the first quarter last year, it said in its earnings statement.
Q1 Revenue, Profit Beat
Ferrari posted increased revenue and profit that beat estimates, with revenue rising to 1.59 billion euros ($1.71 billion) from last year’s EUR1.43 billion, just above the EUR1.57 billion expected by analysts compiled by Visible Alpha.
Ferrari reported an adjusted net profit of EUR352 million, or EUR1.95 per share, above estimates of EUR332 million and EUR1.84 per share, respectively.
Revenue from the sales of Ferrari’s cars and parts increased by 11% year-over-year, while sponsorship and commercial revenue rose by 12%. The automaker said an improved product and country mix helped boost its car sales, along with more personalization of orders.
Ferrari said a higher number of new sponsorships offset lower advertising revenue from the company’s lower finishing position in Formula One racing standings in 2023 compared with 2022. However, Tuesday’s report is the first since Ferrari announced the surprise agreement to sign Lewis Hamilton, regarded as one of the best F1 drivers of all time, to a multi-year contract starting in 2025, which Ferrari noted as a first-quarter highlight.
Company Affirms Guidance
The company also affirmed its full-year guidance, projecting revenue of at least EUR6.4 billion for fiscal 2024, along with a projected adjusted earnings per share (EPS) of at least EUR7.50.
Ferrari shares fell 5% to $406.49 as of 12:22 p.m. ET Tuesday, but are up 20% this year.