Ferrari’s profit and revenue jumped in the first quarter, beating forecasts as a favorable pricing and customization sales offset underwhelming car shipments.
The Italian luxury sports-car maker said Tuesday that it shipped seven fewer vehicles in the first quarter than it did a year prior, with a 20% drop in its China-focused region. Quarterly shipments of 3,560 trailed expectations by 57, Bernstein analysts said in a note.
But revenue, earnings and aftertax profit each grew at a double-digit rate, driven by pricing and more shipments in the higher-margin Americas region, Ferrari said.
At 1205 GMT, Ferrari shares were down 4.5% to EUR379.60.
“The fall in the stock price in the immediate aftermath of the earnings probably reflects some disappointment that Ferrari did not raise FY24 guidance, but historically Ferrari never does this at the 1Q stage,” Bernstein analysts said in a note.
A bigger contribution from customizations–personal touches paid for by consumers–also aided growth, as did a richer product mix anchored by the Daytona SP3.
“Our value over volume strategy continues to be successful,” said CEO Benedetto Vigna.
Aftertax profit rose 19% on year to 352 million euros ($379.1 million), ahead of the Visible Alpha consensus of EUR334.3 million.
In conclusion, while Ferrari shares may face short-term challenges, the company’s commitment to its full-year forecasts and long-term vision positions it for sustained growth and success in the future.
read more
image source
