Ferrari shares surge on turbo-charged sales forecast
Milan — Strong sales of Ferrari’s Portofino and 812 Superfast models helped the Italian luxury carmaker raise its 2019 forecasts on Monday, powering its shares to a record high.
Ferrari’s Milan-listed shares rose as much as 7.4% to an all-time high of €155.15 (R2,556.12) after it reported “solid” third-quarter results, and were up 6.1% by midafternoon.
The “Cavallino Rampante”, or “Prancing Horse”, known for its racing pedigree and roaring engines, is pursuing an aggressive roll-out of new premium models to sustain its solid growth.
Ferrari said its adjusted earnings before interest, tax, depreciation and amortisation (ebita) would be about €1.27bn for the full year, topping a previous forecast of €1.2bn-€1.25bn.
The carmaker also increased its outlook on 2019 revenue to about €3.7bn, from a previous forecast of more than €3.5bn, and on its industrial free cashflow.
“We expect the stock to rise but (the) focus will be on 2020,” Morgan Stanley analysts said in a note, adding that Ferrari’s results were better than expected from the top line down to earnings a share.
Ferrari will present its latest new model in Rome next week, taking the total to five in 2019, including the F90 Stradale, its first hybrid car in series-production to be available in more than a restricted number.
In the third quarter output rose 9.4% year on year to 2,474 vehicles, driven by a 9.5% increase in sales of 8-cylinder models, such as the Portofino, and a 8.9% rise in higher margin 12-cyilinder models, such as the 812 Superfast.
The first deliveries of the Monza SP1 and SP2 had also begun towards the end of September, Ferrari said in a statement.
To support Ferrari’s growth and profitability, CEO Louis Camilleri’s strategy from September 2018 promised to launch 15 new models between 2019 and 2022.
In the July-September period, Ferrari’s adjusted ebita rose 11% to €311m, broadly in line with analyst expectations, according to a Reuters survey.
Margins on core earnings rose by 70 basis points year on year to 33.9%, close to Ferrari’s 34% target for the full-year.
Ferrari said its management will present details on its finalised brand diversification strategy in an analyst call later on Monday.