Ferrari N.V. (NYSE/EXM: RACE) has unveiled its financial results for the third quarter of 2024, showcasing robust growth and strategic advancements.
Financial Performance:
Net Revenues: The company reported net revenues of €1,644 million, marking a 6.5% increase compared to the same period in 2023.
Adjusted EBIT: Earnings before interest and taxes reached €467 million, reflecting a 10.3% rise, with a margin of 28.4%.
Adjusted Net Profit: The adjusted net profit climbed to €375 million, a 13% increase, resulting in a diluted earnings per share of €2.08.
Shipments and Market Dynamics:
Total shipments for the quarter stood at 3,383 units, a slight decline of 2.2% from Q3 2023. This decrease is attributed to deliberate geographic allocations aimed at optimizing market presence.
EMEA (Europe, Middle East, and Africa): Shipments increased by 28 units, indicating stable demand in these regions.
Americas: A marginal decline of 26 units was observed, suggesting a steady market performance.
Mainland China, Hong Kong, and Taiwan: Shipments decreased by 114 units, a significant 29% drop, reflecting a downturn in luxury goods demand within these markets.
Rest of APAC (Asia-Pacific): An increase of 36 units was recorded, demonstrating growth in other parts of the Asia-Pacific region.
Product Portfolio and Innovations:
Deliveries during the quarter were propelled by models such as the Ferrari Purosangue, Roma Spider, and 296 GTS. The SF90 XX Stradale saw increased deliveries, with initial deliveries of the SF90 XX Spider commencing. Conversely, the 812 Competizione A is approaching the end of its lifecycle, while allocations for the Daytona SP3 have increased as planned.
The product lineup for the quarter comprised eight internal combustion engine (ICE) models and five hybrid engine models, representing 45% and 55% of total shipments, respectively.
Strategic Initiatives and Sustainability:
Ferrari continues to invest in innovation and sustainability. The recent unveiling of the F80 supercar exemplifies the company’s commitment to product innovation. Additionally, the early shutdown of the Maranello gas-fueled trigeneration plant marks a significant step towards Ferrari’s goal of achieving carbon neutrality by 2030.
Financial Outlook:
Despite challenges in certain markets, Ferrari maintains its annual guidance, anticipating:
Adjusted Earnings Per Share (EPS): Expected to exceed €7.90.
Net Revenues: Projected to surpass €6.55 billion.
Industrial Free Cash Flow: Estimated to reach up to €950 million.
Market Reception:
Following the earnings announcement, Ferrari’s stock experienced a decline, attributed to concerns over reduced shipments in the Chinese market. Despite this, the company’s shares have exhibited a 41% increase over the year, outperforming the S&P 500’s 20% rise.
Analyst Perspectives:
Analysts acknowledge Ferrari’s resilience in the luxury automotive sector. RBC Capital Markets analyst Tom Narayan anticipates limited selloff, noting Ferrari’s strong position compared to other automakers. Shareholder Guy Spier expressed confidence in Ferrari’s long-term growth potential, suggesting the brand’s luxury status is unrivaled except perhaps by Hermès.
Conclusion:
Ferrari’s third-quarter results underscore its robust financial health and strategic focus on innovation and sustainability. While facing certain market challenges, the company’s diversified product portfolio and commitment to excellence position it favorably fo
r sustained growth in the luxury automotive sector.
