Luxury Sports Car Maker Ferrari's Stock Races Lower - Here's Why

Zinger Key Points
  • Ferrari posts Q1 revenue of €1.585 billion, beating the analyst consensus estimate of €1.572 billion.
  • Ferrari sees FY24 net revenues to be greater than €6.4 billion against an estimate of €6.56 billion.

Ferrari N.V. RACE shares are trading lower after the company reported a gloomy outlook.

The company reported first-quarter FY24 sales growth of 11% year-on-year to €1.585 billion, beating the analyst consensus estimate of €1.572 billion.

Cars and spare parts revenue rose 11.4% Y/Y, and Sponsorship, commercial and brand revenues increased by 11.6%. Total shipments remained flat at 3,560 units.

Adjusted EBITDA rose 12.7% Y/Y to €605 million, and the margin expanded 60 basis points Y/Y to 38.2%.

Net profit for the quarter increased 19% to €352 million. EPS of €1.95 beat the consensus estimate of €1.85.

Operating cash flow totaled €505 million with a €310 million free cash flow. As of March-end, the company was in a Net Industrial Cash position of €38 million for the first time, compared to Net Industrial Debt of €99 million as of December-end.

Ferrari held €1.37 billion in cash and equivalents as of March-end.

Outlook: Ferrari sees FY24 net revenues to be greater than €6.4 billion against an estimate of €6.56 billion.

The company expects FY24 adjusted EPS of greater than or equal to €7.50 versus an estimate of €7.77. Adjusted EBITDA of ≥€2.45 billion with a margin of ≥38%.

Price Action: RACE shares are trading lower by 3.16% at $414.15 in premarket at the last check Tuesday.

Image by The Image Engine via Shutterstock

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