Post Earnings Coverage as Ferrari Earnings Surged 20% and Updates Profit Outlook for a Second Time in the Year

Upcoming AWS Coverage on Tata Motors Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 15, 2016 / Active Wall St. announces its post-earnings coverage on Ferrari N.V. (NYSE: RACE). The company released its financial results for the third quarter fiscal 2016 on November 07, 2016. The supercar maker’s earnings jumped 20.2%, leading it to raise its FY16 earnings forecast for the second time this year. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Ferrari’s competitors within the Auto Manufacturers – Major space, Tata Motors Ltd (NYSE: TTM), will be reporting its fiscal Quarter ending September 2016 later in November. AWS will be initiating a research report on Tata Motors in the coming days.

Today, AWS is promoting its earnings coverage on RACE; touching on TTM. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=RACE

http://www.activewallst.com/registration-3/?symbol=TTM

Earnings Reviewed

For the three months ended on September 30th, 2016, Ferrari’s net revenues were Euro 783 million, an increase of Euro 60 million, or 8.3% from Q3 2015. Revenues in cars and spare parts totaled Euro 537 million, in-line with prior year, led by higher volumes of the 488 GTB, the 488 Spider, and the F12tdf, first deliveries of the newly launched models GTC4Lusso and LaFerrari Aperta, along with higher contribution from personalization.

Engines’ revenues were Euro 97 million, up by 92% on a y-o-y basis, and showed a significant increase mainly due to strong sales of Maserati and higher rental revenues from other Formula 1 Teams. Sponsorship, commercial and brand revenue came in at Euro 125 million, up by 14%, primarily due to better 2015 championship ranking compared to 2014, higher sponsorship revenues and positive contribution from brand related activities.

For Q3 2016, Ferrari’s adjusted EBIT soared 23% to Euro 172 million from Q3 2015 as a result of higher volumes. Ferrari’s net profit rose to Euro 113 million for Q3 2016, up Euro 19 million, or 20% from Q3 2015 earnings figures.

Shipment Details

During Q3 2016, Ferrari’s Shipments totaled 1,978 units, up 29 units from previous year. The increase in volume was driven by a 15% increase in sales of its 12 cylinder models (V12), led by the success of the F12tdf, first deliveries of the GTC4Lusso and the newly launched LaFerrari Aperta. Shipments of the 8 cylinder models (V8) were substantially in-line with the prior year.

The EMEA, Americas, and Greater China regions reported robust growth in shipments, increasing by 5%, 3% and 15%, respectively, whereas the rest of APAC reported a 57 units decline in shipments affected by logistic delays.

Cash Flow & Balance Sheet

Ferrari reported that Industrial free cash flow for the three months ended September 30, 2016, was Euro 178 million, primarily driven by a strong increase in cash flow from operating activities, including a positive change from advances on the newly launched LaFerrari Aperta and increased tax liabilities, partially offset by CAPEX and negative working capital due to seasonality. The company’s net industrial debt at the end of Q3 2016 was Euro 585 million, better than Euro 763 million at June 30, 2016. In September, the Company decided to partially prepay Euro 300 million out of the Euro 1,500 million term loan provided by a syndicate of banks in 2015.

Outlook

Ferrari forecasts FY16 gross operating profit at €850 million, up from a previous forecast of €800 million. It expects to end the year with EUR 700 million in net industrial debt, down from a prior forecast of EUR 730 million. The company maintained its previous guidance for FY16 revenue (more than EUR 3 billion) and shipments (about 8,000 cars).

Stock Performance

On Monday, the stock closed the trading session at $53.26, slipping 2.22% from its previous closing price of $54.47. A total volume of 1.01 million shares have exchanged hands, which was higher than the 3-month average volume of 440.41 thousand shares. Ferrari’s stock price advanced 1.02% in the last month, 11.12% in the past three months, and 28.18% in the previous six months. Furthermore, since the start of the year, shares of the company have gained 12.37%. The stock is trading at a PE ratio of 26.97 and has a dividend yield of 0.96%.

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