Ferrari Raises Guidance After Sales Mix, Customizations Lift Profit

By David Sachs

Ferrari raised its full-year guidance after profit and revenue grew in the third quarter on a better sales mix and higher demand for vehicle customization.

The Italian sports-car maker said Thursday that after-tax profit reached 332.0 million euros ($350.9 million) compared with EUR228.0 million in the third quarter of last year. Analysts had expected EUR297.0 million, according to estimates provided by FactSet.

Ferrari posted revenue of EUR1.54 billion, a 24% rise from a year ago. Analysts had predicted revenue of EUR1.48 billion, according to Factset.

Earnings before interest, taxes, depreciation and amortization hit EUR595 million, an increase of 37%. Analysts polled by FactSet had estimated EUR570 million.

The company's shipments rose on the quarter to 3,459 from 3,188, Ferrari said.

Ferrari upgraded its full-year guidance thanks to a stronger diversity of sales and high demand for vehicle customization, it said. It now expects revenue to reach about EUR5.90 billion compared with the previous target of about EUR5.80 billion. It also expects an adjusted earnings before interest and taxes margin of at least 26.5% compared with the previous target of at least 26%.

The company also slightly raised its Ebitda margin target to above 38% from about 38% for 2023. Industrial free cash flow is now expected to exceed EUR900 million compared to the previous target of around EUR900 million.

At 1212 GMT, shares were up 2.9% to EUR295.30.

Write to David Sachs at [e-mail]

(END) Dow Jones Newswires

November 02, 2023 08:31 ET (12:31 GMT)

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