By David Sachs
Ferrari has raised its full-year guidance after reporting growth in profit and revenue for the third quarter. This increase was driven by a better sales mix and higher demand for customized vehicles.
Financial Performance
In the third quarter, Ferrari’s after-tax profit reached €332.0 million ($350.9 million), compared to €228.0 million in the same period last year. Analysts had estimated a profit of €297.0 million. The company’s revenue also rose by 24% to €1.54 billion, exceeding analysts’ predictions of €1.48 billion. Additionally, earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €595 million, an increase of 37%. Analysts had forecasted €570 million.
Increased Shipments
Ferrari reported that its shipments rose to 3,459 vehicles in the quarter, up from 3,188 vehicles the previous year.
Upgraded Guidance
Due to a stronger diversity of sales and high demand for vehicle customization, Ferrari has upgraded its full-year guidance. The company now expects revenue to reach approximately €5.90 billion, compared to the previous target of about €5.80 billion. Additionally, it anticipates an adjusted EBIT (earnings before interest and taxes) margin of at least 26.5%, up from the previous target of at least 26%. Furthermore, Ferrari has slightly raised its EBITDA margin target for 2023 to above 38% from about 38%. The company now expects industrial free cash flow to exceed €900 million, surpassing the previous target of around €900 million.
Market Response
Following these positive results, Ferrari’s shares rose by 2.9% to €295.30 at 1212 GMT.
