Categories AlphaGraphs, Consumer, Earnings

Ferrari’s stock jumps 10% after Q4 earnings top expectations

Ferrari NV’s (RACE) shares soared 10.2% in morning trade on Thursday after the company beat estimates on earnings for the fourth quarter of 2018. Revenues fell short of expectations.

Ferrari fourth quarter 2018 earnings infographic
Ferrari Q4 2018 Earnings Infographic

Net revenues inched up 1% to EUR 845 million from last year. Total shipments for the quarter increased 19% to 2,398 units. Net profit improved 40% to EUR 191 million compared to the prior-year quarter. EPS, both on a reported and adjusted basis, grew 41% to EUR 1.00.

During the quarter, shipments grew across all regions with the highest growth of 31% in EMEA. Revenues grew year-over-year in Cars and spare parts as well as in Sponsorship, commercial and brand. Engines revenue dropped 30% on a constant currency basis while Other revenues fell 31%.

For full-year 2019, net revenues are expected to grow over 3% to more than EUR 3.5 billion. Adjusted EPS is expected to grow around 6% to between EUR 3.50 and EUR 3.70. Industrial free cash flow is expected to grow over 10% to EUR 0.45 billion.

In September, Ferrari outlined its long-term financial targets. These include plans to increase its dividend payout ratio to 30%, along with a share repurchase program of EUR 1.5 billion to be executed over the 2019-2022 period in relation to the growth of its industrial free cash flow.


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