Ferrari (NYSE:RACE) Profit Jumps 17% in Q-3
Ferrari (NYSE:RACE) saw a 3.4% increase in vehicle shipments from the same frame in Y 2017 driven by a 27% increase in sales of V-12-powered Supercars.
- The 4-seat GTC4Lusso drove much of the jump in 12-cylinder sales, helped by deliveries of the limited-run LaFerrari Aperta Supercar. The gain was partially offset by the phasing out of the F12 Berlinetta.
- The waiting list for Ferrari’s newest 2-seat 12-cylinder model, the 812 Superfast, extends beyond Y 2018.
- Sales of V-8-powered models fell slightly Y-Y due to the phase-out of the California T, offset mostly by good sales of the 488 and new GTC4Lusso T models.
- Ferrari’s sales rose 5.1% in Europe, 5% in North and South America (combined), and 7.1% in the rest of the world.
- Sales of cars and spare parts generated EUR 605-M in revenue in the Quarter, 72.4% of Ferrari’s total revenue.
- Sales of engines generated EUR 88-M in revenue (10.5% of total). That was down 10% from the same frame in Y 2016 due to the end of a relationship with a F1 racing team and a decrease in deliveries to Maserati.
- Sponsorship, commercial, and brand activities related to Ferrari’s racing team generated EUR 124-M in revenue, down slightly from last year. The Ferrari team’s revenue is down this season because its ranking in the Y 2016 championship results was lower than its ranking in Y 2015. That decline was largely offset in Q-3 by increased revenue from its sponsors.
- Ferrari’s EUR 147-M in industrial free cash flow fell from a year ago on higher capital expenditures related to its new models.
- Ferrari ended the Quarter with EUR 485-M in net industrial debt, down from EUR 653-M at the end of Y 2016, that due to strong free cash flow.
Notes: Ferrari earnings: The raw numbers
All financial numbers are in Euros. As of 2 November, 1 Euro = about US$1.16.
|Metric||Q-3 2017||Q-3 2016||Change|
|Earnings before interest and tax (EBIT)||202-M||172%||17%|
|Industrial free cash flow||147-M||178-M||(17%)|
|Net industrial debt||485-M||627-M||(142-M)|
Ferrari raised its full-year guidance
- Shipments of about 8,400 vehicles. Unchanged from prior guidance; Y 2016 result: 8,014.
- Net revenue of about EUR 3.4-B. Prior guidance: greater than EUR 3.3-B; Y 2016 result: EUR 2.85-B.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of about EUR 1-B. Prior guidance: greater than EUR 950-M; Y 2016 result: EUR 748-M
- Net industrial debt to fall below EUR 500-M. Prior guidance: about EUR 500-M; as of the end of Y 2016: EUR 653-M.
Note: Ferrari expects its improved margin to boost its full-year profit gain.
|NYSE:RACE||117.35||2 November 2017||-2.92||118.49||119.13||115.52||921,130|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Neutral (0.20)||Neutral (0.19)||Neutral (0.23)||Neutral (0.17)|