Ferrari roars past profit estimates

Italian luxury car maker's €940m revenues easily beat analysts' forecasts

The new Ferrari Portofino. The company's first-quarter results topped forecasts. Reuters
The new Ferrari Portofino. The company's first-quarter results topped forecasts. Reuters

Italian luxury car maker Ferrari beat forecasts with a 14 per cent rise in first-quarter core earnings, driven by strong sales of its Portofino model and increased shipments in all regions, and stuck to its full-year targets.

Milan-listed Ferrari shares rose as much as 5.7 per cent following the results on Tuesday, They were up 4.6 per cent at 11:00 GMT.

Adjusted earnings before interest, tax, depreciation and amortisation (ebitda) came in at €311 million (Dh1.27 billion) in January-March, above the average forecast of €284m in a Reuters poll of analysts.

Net revenues rose 13 per cent to €940m, topping the average estimate of €864m.

For 2019, Ferrari expects adjusted ebitda to rise around 10 per cent to €1.2bn to €1.25bn. Sales are seen growing more than 3 per cent to top €3.5bn.

Last year's plan set a target for adjusted ebitda in excess of €1.3bn in 2020, but chief executive Louis Camilleri said earlier this year he was "very bullish" and might rise it, betting on new models and special editions at premium prices to lure customers.

Mr Camilleri is planning more profit-boosting limited-edition sports cars to reach the adjusted ebitda goal, and will unveil a record five new models in the coming months, according to Bloomberg. This also includes the manufacturer’s first industrialised hybrid car due at the end of this month, Mr Camilleri said at the Geneva car show in March.

Part of the boost to shipments stemmed from accelerated deliveries to China ahead of new emission regulations, Ferrari said. Shipments to Mainland China, Hong Kong and Taiwan rose 79 percent to 328 vehicles, while total deliveries stood at 2,610 cars.

Updated: May 8, 2019 02:03 AM

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