Ferrari earnings top estimates as supercar maker restores output

Ferrari NV posted earnings that beat estimates for the first complete quarter that the Italian supercar maker fully restored production capacity in the wake of coronavirus-related disruptions.

The manufacturer controlled by the Agnelli family’s investment company Exor NV reported 330 million euros ($386 milion) of adjusted earnings before interest, tax, depreciation and amortization in a statement Tuesday. The third-quarter result topped analysts’ average estimate of 300 million euros.

Revenue dipped to 888 million euros, short of consensus for 894 million euros.

Key Insights

• Shipments fell 6.5% in third-quarter to 2,313 cars, with Ferrari expecting that it will recover about 500 of the roughly 2,000 units lost following its pandemic-related suspension earlier this year.
• The company said adjusted Ebitda, industrial free cash flow and other figures will be at the high end of the full-year earnings projections given in August. It adjusted guidance three months ago to reflect the impact of a seven-week factory shutdown.
• Chief Executive Officer Louis Camilleri, a former Philip Morris International Inc. executive, is revamping Ferrari’s lineup so it can keep boosting prices. The company introduced five new models in 2019, including the Roma Coupe with a mid-front-mounted 620-horsepower engine, which helped boost annual sales to more than 10,000 units for the first time.

In September, Ferrari also debuted its first new model since Covid-19 forced the company to temporarily close much of its operations, unveiling a more powerful Portofino.

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