Italian luxury sports car manufacturer, Ferrari S.p.A, recently announced an impressive increase of 20% for its third quarter profit. The car manufacturer reported its revenues to reach €783 million, which was 8.3% higher compared to last year’s third quarter report.
Ferrari has consistently experienced a growth in its revenue for the past 10 years. It is recognized worldwide for its luxury cars, but the car company also sells engines, brand merchandise, and owns a Formula 1 racing team as well as theme parks. All of these contribute to the company’s consistent annual revenue growth.
Included on Ferrari’s reports, it has seen an increase on its shipments to 1,978 cars during the third quarter, and expects around 8,000 shipments by the end of the year. The predicted number of shipments was higher than 7,664 units from 2015.
Sales rose in regions such as Europe, the Americas and a greater part of China. However, the company witnessed a decline in sales for the rest of Asia due to delays caused by shipment carriers.
The company’s net profit was also higher compared to the 2015 results which rose from €94 million to €113 million. The increase was mainly because of the additional sales on its higher-margin 12-cylinder cars. During the quarter, Ferrari also released its first shipments of its limited edition LaFerrari Aparti, which costs about $2 million.
Since the start of 2016, Ferrari shares experienced a boost of more than 6%. The company’s stocks also had an increase of 11% from the beginning of the year, after it spun off from its mass-market parent Fiat Chrysler. Ferrari also opened strong on its market in Milan which then gave an additional 2% since the release of its Q3 report along with the update regarding the full-year positive forecast.
Another contributing factor that helped Ferrari on its increased revenue and profit was due to the release of its special edition models such as the convertible Aperta. Currently, Ferrari experiences constant demand for its special edition models. Due to the demand, all 200 Aperta units were immediately sold out even before the first one was shipped.
Right after the announcement of Ferrari about its positive Q3 earnings, its shares gained 4.01% quickly. The initial reaction towards Ferrari’s updates clearly depicted bullish feedback.
The car manufacturer’s adjusted earnings rose to €0.59 per share or 66 cents per ADR. This result surpassed even the Zacks Consensus 54 cents estimate. In addition to that, its adjusted earnings were higher by 18% than the previous year’s Q3 update.
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