Ferrari NV released its second-quarter earnings report on Wednesday morning, revealing earnings expectations beat Wall Street estimates due to rising luxury vehicle demand, leading the company to increase its full-year guidance. Despite this positive report, some Wall Street analysts called it underwhelming, and others expressed disappointment, suggesting the results did not fully meet their expectations.
The Italian sports-car maker reported adjusted earnings per share of 1.83 euros ($2.01) on revenue of 1.47 euros billion ($1.61 billion) for the second quarter. Wall Street analysts expected EPS of around 1.73 euros on sales of 1.48 billion euros. The company now forecasts adjusted full-year earnings of between 6.25-6.40 euros per share, up from the 6-6.20 range. Nonetheless, this result aligns with analysts' consensus of 6.34 euros.
Here are the highlights of the second-quarter results (courtesy of Bloomberg):
Second quarter deliveries:
Full-year forecast:
Even though the report was positive, Wall Street analysts, including Bernstein's Daniel Roeska, found the results less than satisfactory. In a note to clients, Roeska stated that the modest increase in guidance, which merely meets the consensus, "may come as a source of disappointment for some."
Other analysts had this to say (list courtesy of Bloomberg):
Jefferies, Philippe Houchois (hold)
Guidance upgrade is only "muted," while Ebitda guidance continues to see pressure from continued high cost inflation as well as rising depreciation and amortization costs
Report was otherwise a "solid" beat, exceeding upper end of consensus on better price realization with better contributions from racing
Bloomberg Intelligence, Michael Dean (no rating)
New outlook "disappointed as it just moved the company to the top end of consensus — and implied a weaker 2H margin" despite record-high list prices for its cars
Notes all cars are sold out until 2025, which may drive concerns over the new 4x4 crossover Purosangue's margin impact in the second half of 2023
Shares of Ferrari trading in New York in the premarket session fell as much as 4.6%. On a long-term basis, shares are trading well above the upper range of the channel.
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