Ferrari (RACE) Q3 2022 earnings beat estimates, automaker raises guidance

Ferrari on Wednesday again raised its guidance for the full year after shipments, revenue and earnings per share all rose by double-digit percentages during the third quarter.

Still, Ferrari’s profit margin fell as it shipped a less profitable mix of vehicles during the period.

The Italian supercar maker now expects revenue of about 5 billion euros ($4.9 billion) and adjusted earnings per share of about 5 euros for the full year. It last raised its 2022 guidance in August, telling investors to expect revenue of about 4.9 billion euros and adjusted earnings per share of between 4.80 euros and 4.90 euros for the year.

Ferrari shares fell more than 1% in afternoon trading. Here are the key numbers from the third-quarter earnings report:

• Earnings per share: 1.23 euros vs. 1.18 euros expected by Wall Street analysts polled by Refinitiv.
• Revenue: 1.25 billion euros vs. Wall Street’s estimate of 1.16 billion euros per Refinitiv.

“Today, we continue to manage an outstanding order book: with the exception of few models, our entire range is sold out,” CEO Benedetto Vigna said in a statement.

Ferrari shipped 3,188 vehicles in the third quarter, up 16% from a year ago. The increase in deliveries was driven by the ramp-up in production of the six-cylinder hybrid 296 GTB sports car, Ferrari said. But those gains were partially offset by lower shipments of the higher-priced eight-cylinder hybrid SF90.

The change in mix led to a decline in Ferrari’s EBIT (earnings before interest and taxes) margin, to 23.9% from 25.7% in the third quarter of 2021.

Ferrari’s new-model pipeline remains robust. The company unveiled its first-ever SUV, the Purosangue, in September. Deliveries will begin in mid-2023. An open-roof version of the 296 sports car, called 296 GTS, is also expected to begin shipping in the first half of next year.

Ferrari has been largely unaffected by the global supply chain issues that have hampered larger automakers’ production, as its total output volumes are small.

Meanwhile, demand has remained strong. The company’s wealthy customers are less affected by the near-term economic concerns that may be leading mainstream consumers to trim spending.