Post Earnings Coverage as Ferrari’s Revenue Zoomed 22%; EPS Rocketed 60%

Upcoming AWS Coverage on Blue Bird Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 19, 2017 / Active Wall St. announces its post-earnings coverage on Ferrari N.V. (NYSE: RACE). The Company announced its first quarter fiscal 2017 financial results on May 04, 2017. The iconic Italian maker of sports and racing cars surpassed revenue expectations. Register with us now for your free membership at:

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One of Ferrari’s competitors within the Auto Manufacturers – Major space, Blue Bird Corp. (NASDAQ: BLBD), released its Q2 FY17 financial results on May 11, 2017. AWS will be initiating a research report on Blue Bird in the coming days.

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

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Earnings Reviewed

For the three months ended March 31, 2017, Ferrari reported net revenues of Euro 821 million, an increase of Euro 146 million, or 21.5%, compared to revenue of Euro 675 million in Q1 2016. The Company’s revenue numbers topped analysts’ consensus of Euro 767 million.

For Q1 2017, Ferrari’s adjusted EBIT was Euro 177 million, up Euro 56 million, or 46% versus prior year EBIT of Euro 121 million, as a result of higher volume and thanks to the 488 family, the GTC4Lusso, and the F12tdf together with positive contribution from the Company’s personalization programs partially offset by the F12berlinetta phasing-out and the California T at its 4th year of commercialization. Mix was positively impacted by LaFerrari Aperta, strong V12 performance as well as pricing increases, partially offset by LaFerrari that completed its lifecycle in 2016 as well as the nonregistered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016.

Ferrari stated that its Research and development costs and industrial costs grew by Euro 15 million mainly due to higher D&A and R&D expenses to support product range and components innovation mainly for hybrid technology as well as F1 developments. FX, excluding hedges, had a positive impact mainly due to USD and JPY, partially offset by GBP.

Ferrari reported net profits of Euro 124 million, or Euro 0.65 per share, both up 60% compared to net profits of Euro 78 million, or Euro 0.41 per share, in Q1 2016.

Segment Results

Ferrari’s shipments totaled 2,003 units in Q1 2017, up 121 units or 6.4% on a y-o-y basis, driven by a 50% increase in sales of the Company’s 12 cylinder models (V12), partially offset by the 8 cylinder models (V8) which posted a 3% decrease. V12 strong performance was led by the GTC4Lusso, LaFerrari Aperta as well as the F12tdf, partially offset by the F12berlinetta, at its 6th year of commercialization, phasing-out while California T was at its 4th year of commercialization.

During Q1 2017, Ferrari’s revenues in Cars and spare parts surged 21% to Euro 581 million, vs. Euro 481 million in Q1 2016, driven by higher volumes and strong ix led by the 488 family, the GTC4Lusso, the F12tdf and LaFerrari Aperta, along with a greater contribution from the Company’s personalization programs, pricing increases and FX. This was partially offset by LaFerrari that completed its lifecycle in 2016, as well as the non-registered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016. Ferrari’s Engines division reported revenues of Euro 104 million, surging 81% compared to revenue of Euro 57 million in the year ago quarter, reflecting an increase mainly attributable to strong sales to Maserati more than offsetting the termination of the rental agreement with a Formula 1 racing team. Sponsorship, commercial and brand revenues grew 4% on y-o-y basis to Euro 123 million, mostly due to higher sponsorship revenues partially offset by lower 2016 championship ranking compared to 2015.

Cash Flow

Ferrari reported Industrial free cash flow for the three months ended March 31, 2017, of Euro 76 million driven by strong adjusted EBITDA of Euro 242 million partially offset by CapEx of Euro 72 million and Euro 53 million of net change in working capital due to inventory increase driven by the projected volume growth in-line with the Company’s 2017 outlook and lower CapEx payables versus Q4 2016. Net industrial debt at March 31, 2017 was reduced to Euro 578 million from Euro 653 million at December 31, 2016, primarily due to the industrial free cash flow generation.

2017 Outlook

Ferrari is expecting the following performance in 2017, assuming FX consistent with current market conditions:

Shipments of 8,400 including supercars;
The Company is forecasting net revenues greater than Euro 3.3 billion and adjusted EBITDA greater than Euro 950 million;
Ferrari is estimating net industrial debt of Euro 500 million, including a cash distribution to the holders of common shares and excluding potential share repurchases.

Stock Performance

On Thursday, May 18, 2017, the stock closed the trading session at $84.22, climbing 1.75% from its previous closing price of $82.77. A total volume of 437.22 thousand shares have exchanged hands. Ferrari’s stock price rallied 19.33% in the last month, 28.77% in the past three months, and 57.22% in the previous six months. Furthermore, since the start of the year, shares of the Company have soared 46.26%. The stock is trading at a PE ratio of 36.75 and has a dividend yield of 0.82%.

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