Automotive News: Ferrari shares plummet on China sales drop

Ferrari shares are down 7% in midday trading in New York as third-quarter shipments of its luxury supercars to China plummeted.

The Italian luxury sports carmaker reported a third-quarter profit that was slightly better than expected versus analysts tracked by Bloomberg.

Shipments were a major focus. The Italian manufacturer was battered by a 29% plunge in shipments to the China region and a 2.4% decline in deliveries to the US.

Here’s a snapshot of quarterly results:

Adjusted Ebitda EU638 million, +7.2% y/y, estimate EU633.8 million (Bloomberg Consensus)
Adjusted Ebit EU467 million, +10% y/y, estimate EU463.3 million
Adjusted Ebit margin 28.4% vs. 27.4% y/y, estimate 28%
Revenue EU1.64 billion, +6.5% y/y, estimate EU1.64 billion
Cars and spare parts revenue EU1.40 billion, +5.3% y/y, estimate EU1.42 billion
Sponsorship, commercial and brand revenue EU174 million, +20% y/y, estimate EU161.7 million
Adjusted net income EU375 million, +13% y/y, estimate EU369.8 million
Adjusted diluted EPS EU2.08 vs. EU1.82 y/y, estimate EU2.03
Industrial free cash flow EU364 million, estimate EU342.7 million

Deliveries 3,383, -2.2% y/y, estimate 3,469

EMEA deliveries 1,426 units, +2% y/y, estimate 1,486
Americas Deliveries 1,070 units, -2.4% y/y, estimate 1,097
Mainland China, Hong Kong and Taiwan 281 units, -29% y/y, estimate 348.4
Rest of APAC deliveries 606 units, +6.3% y/y, estimate 582.27

Ferrari noted that despite lower shipments in the quarter, increased client customization requests helped drive additional revenue.

“The third quarter once again shows growing results for Ferrari, driven by a strong product mix and increased personalization,” Benedetto Vigna, CEO of Ferrari wrote in a statement.

Vigna said, “It confirms our commitment to deliver on the promises we made at our Capital Markets Day in 2022, along with the exceptional order book visibility well into 2026 …”