Ferrari (RACE, Financial) faced challenges in the third quarter as shipments decreased by 2.2% compared to the previous year, with a significant 29% drop in China and a 2.4% decrease in the U.S. Despite the declines, Ferrari did not adjust its full-year performance guidance, which was initially set in August. This lack of adjustment led to an intraday drop in the stock price of over 6.9%.
The luxury carmaker reported a 6.5% increase in revenue to €1.64 billion, meeting market expectations, while adjusted net profits rose 13% to €375 million. The earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a 7.2% growth at €638 million, and diluted earnings per share increased to €2.08, beating forecasts of €2.03.
However, vehicle deliveries fell short of expectations at 3,383 units. The European, Middle Eastern, and African markets showed a marginal 2% growth, while the Asia-Pacific region excluding China saw a 6.3% increase. Analysts highlighted concerns over luxury consumption slowdowns impacting not just Ferrari but also other high-end brands.
Despite shipment declines, Ferrari noted a rising demand for custom vehicles. CEO Benedetto Vigna emphasized the diversity of their product offerings and customizable options as key growth drivers, assuring that their order books are filled through 2026.
Analysts from Goldman Sachs maintained a neutral rating on Ferrari's stock with a 12-month target price of €470. They noted that Ferrari has historically adjusted its guidance in Q3 each year since 2016, except for 2018 and the current year, which might be seen as a disappointment.
