Ferrari Falls Despite Profits Hit as Shipments Stay Flat
Shares of Ferrari (RACE) dipped during intraday trading on Tuesday after the luxury automobile manufacturer sent out around the same number of cars during the first quarter, despite the fact that profits were higher than expected.
It was said in the financial statement of the Italian automobile maker that the company profited from higher pricing since shipments of 3,560 units were “substantially flat” in comparison to the first quarter of the previous year.
Beat Revenue and Profit for the First Quarter
With sales growing to 1.59 billion euros ($1.71 billion) from 1.43 billion euros the previous year, Ferrari announced improved revenue and profit that above expectations. sales grew to 1.59 billion euros, which is slightly above the 1.57 billion euros that analysts surveyed by Visible Alpha had anticipated.
The adjusted net profit that Ferrari recorded was 352 million euros, which is equivalent to 1.95 euros per share. This figure is higher than the projections of 332 million euros and 1.84 euros per share, respectively.
A year-over-year gain of 11% was seen in income from the sales of Ferrari automobiles and components, while a 12% increase was seen in revenue from sponsorship and commercial activities. The manufacturer said that a better product and country mix, in addition to increased customisation of orders, contributed to an increase in the number of automobiles it sold.
Ferrari said that a greater number of new partnerships compensated for the decrease in advertising income that resulted from the company’s lower finishing place in Formula One racing standings in 2023 compared to 2022. On the other hand, the report that was released on Tuesday is the first one after Ferrari made the unexpected announcement that they had reached an agreement to sign Lewis Hamilton, who is widely considered to be one of the greatest Formula One drivers of all time, to a multi-year deal beginning in 2025. Ferrari cited this as a highlight of the first quarter.
The Company Reaffirms the Guidance
In addition, the business reaffirmed its forecast for the entire year, which included a projection of adjusted profits per share (EPS) of at least 7.50 euros and a revenue projection of at least 6.4 billion euros for the fiscal year 2024 of the company.
As of Tuesday at 12:22 p.m. Eastern Time, Ferrari shares had dropped by 5% to $406.49, although they had increased by 20% so far this year.
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