Why Are Luxury Sports Car Maker Ferrari's Shares Racing Today?

Ferrari N.V. RACE shares are rising after it reported better-than-expected third-quarter FY23 earnings.

RACE reported third-quarter FY23 sales growth of 23.5% year-on-year to $1.681 billion (€1.544 billion), beating the analyst consensus estimate of $1.468 billion.

Cars and spare parts revenue rose 26% Y/Y, and Engines decreased by 33%. Total shipments rose 9% to 3,459 units.

Adjusted EBITDA rose 37% Y/Y to €595 million, and the margin expanded 380 basis points Y/Y to 38.6%.

Net profit for the quarter increased 46% to €332 million. EPS of $1.98 beat the consensus estimate of $1.60. 

Operating cash flow totaled €481 million with a €276 million free cash flow. Net Industrial Debt as of September 30, 2023, was €233 million.

Benedetto Vigna, Ferrari CEO, said, "The order book remains at highest levels reflecting strong demand across all geographies, covering the entire 2025."

Outlook: Ferrari raised FY23 net revenue guidance from about €5.8 billion to about €5.9 billion. It also raised FY23 adjusted EPS guidance from €6.25 - €6.40 to above or equal to €6.55.

Price Action: RACE shares are trading higher by 5.95% at $323.14 on the last check Thursday.

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