Ferrari (NYSE:RACE) the Stock’s Performance

Ferrari (NYSE:RACE) the Stock’s Performance

Ferrari (NYSE:RACE) the Stock’s Performance

$RACE

The iconic Italian Supercar maker posted financial results on 1 February 2018, for Q-4 FY 2017, and for FY 2017).

The Maranello, Italy-based company’s Quarterly total net revenues and adjusted diluted EPS grew 1% and 3% Y0Y, respectively.

This morning, and based on Ferrari most recent new I decided to update our continuing coverage of the company’s stock performance just ahead of this year’s testing of The Scuderia’s testing of its new F1 racer in Spain, as follows:

Earnings Highlights and Summary

In Q-4 FY 2017, Ferrari reported total net revenues of €840-M compared to €836-M recorded at the end of Q-4 FY 2016. The Company’s cars and spare parts revenues were €601-M for the reported Quarter compared to €573-M in Q-4 FY 2016.

Engines revenues fell to €81-M during Q-4 FY 2017 from €113-M in Q-4 FY 2016.

Sponsorship, commercial, and brand revenues came at €124-M in Q-4 FY 2017 off from €128-M in Q-4 FY 2016.

But, other revenues spiked 58% to €34-M in Q-4 FY 2017 from €22-M in the last year’s same frame.

The world’s Top luxury sports car maker reported a net profit of €136-M, or €0.71 per diluted share, for Q-4 FY 2017, up from €112-M, or €0.59 per diluted share, in Q-4 FY 2016.

Plus, the company’s adjusted net profit stood at €136-M, or €0.71 per diluted share, in Q-4 FY 2017, which came in above the €130-M, or €0.69 per diluted share, reported in the last year’s comparable Quarter.

For FY 2017, Ferrari’s total net revenues stood at €3.42-B Vs €3.11-B in FY 2016. And, the Company’s adjusted net profit came in at €537-M, or €2.82 per diluted share, for FY 2017, up from €425-M, or €2.24 per diluted share, in the prior year.

Operating Metrics

During the 3 months ended 31 December 2017, the Company’s total shipments were 2,017 units compared to 1,940 units in the last year’s corresponding quarter.

The Company’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) improved to €258-M, or 30.7% of total revenues, for Q-4 FY 2017 from €251-M, or 30.0% of total revenues, in Q-4 FY 2016.

Notably, Ferrari’s adjusted earnings before interest and taxes (EBIT) increased to €194-M, or 23.1% of total revenues, during Q-4 FY 2017 from €183-M, or 21.9% of total revenues, in Q-4 FY 2016.

Shipment by Region

During Q-4 FY 2017, Ferrari shipped 799 units to the Europe, Middle-East, and Africa (EMEA) region, which was 6% lower than the 848 units shipped in Q-4 FY 2016.

Shipments to the Americas grew 6% to 733 units in Q-4 FY 2017 from 689 units in the prior year’s same Quarter.

China, Hong Kong, and Taiwan region accorded for a total shipment of 164 units in the reported quarter, rising from 123 units in Q-4 FY 2016.

Shipments of Ferrari’s to the Rest of Asia/Pacific (APAC) region were 321 units in Q-4 FY 2017 compared to 280 units in Q-4 FY2016.

Cash Flow and Balance Sheet

For the 3 months ended 31 December 2017, Ferrari generated €156-M in cash from operations compared to €439-M in Q-4 FY 2016. The Company reported a free cash flow of €16-M in Q-4 FY 2017 Vs €351-M in Q-4 FY 2016. And, the free cash flow from industrial activities were €13-M in Q-4 FY 2017 compared to a negative free cash flow from industrial activities of €71-M in Q-4 FY 2016.

The Company had a cash and cash equivalents balance of €648-M as on 31 December 2017, compared to €458-M at the close of books as on 31 December 2016.

Notably, Ferrari’s net debt amounted to €1.16-B as on 31 December 2017, compared to €1.39-B as of 31 December 2016.

Note: Ferrari management’s goal is to be debt free by FY 2025

The Outlook

In is guidance for FY 2018, the Company expects net revenues to be greater than €3.4-B, with shipments of above 9,000 units, and adjusted EBITDA is projected to be €1.1-B for FY 2018.

Ferrari’s Stock Performance

At Friday, 23 February’s closing bell, Ferrari’s stock finished higher ending the session at 129.56 close to its 52 wk highs.

Volume traded for the day: 205,581/shares.

Stock performance in the last month; up 5.50%; previous 3-month frame, up 17.27%; past 12-month frame up 95.30%; and up 22.25% YTD.

After Friday’s close, Ferrari’s market cap was at $24.10-B.

Price to Earnings (P/E) ratio was at 37.96.

The stock has a dividend yield of 0.54%.

The stock is part of the Consumer Goods sector, categorized under the Auto Manufacturers – Major industry.

Ferrari is the Aristocrat of the world’s automotive sector.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 129.56 23 February 2018 2.85 127.05 129.56 127.05 205,581
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.30) Neutral (0.10) Bullish (0.45) Bullish (0.35)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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