(Bloomberg) -- Ferrari NV (NYSE:RACE) reported a third-quarter profit that slightly missed expectations as the Italian carmaker faced currency headwinds and a less favorable model mix that included higher sales volumes of its entry level supercar.
Key Insights
- Adjusted Ebitda missed an average analyst estimate of 282 million euros ($321 million) by 1.5 percent. New Chief Executive Officer Luis Camilleri is pushing for more limited-edition sportscars that can top 1 million euros to boost profit margins in the next five years.
- Currency headwinds, mainly from the dollar’s depreciation versus the euro, resulted in a 19 million-euro drag on third-quarter profit. Ferrari sold 34 percent of its cars in the Americas during the third quarter.
- Profit was also held back by strong demand for the $200,000 Portofino model, just as sales of the LaFerrari Aperta, which costs about ten times that amount, is nearing the end of a limited-series run.
- Ferrari earlier this year picked 499 of its most loyal customers for a chance to buy the 1.6 million-euro Monza supercar. The focus on high-priced models helped the manufacturer lift margins to 33 percent.
Market Reaction
- Shares fell as much as 2.6 percent to 101.50 euros, before making up most of the price drop.
- The stock has lost 15 percent since Camilleri, a veteran of Philip Morris International Inc (NYSE:PM)., replaced Marchionne as CEO, a few days before the Italian-Canadian manager died in July.
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- Ferrari 3Q Revenue 2.6% Below Est.; Shares Fall 2.2%
- Ferrari is seeking an Ebitda margin of 38 percent of revenue by 2022, equal to Hermes, the French luxury fashion group. With the Purosangue SUV due just at the end of the plan in 2022, Ferrari needs lucrative special-edition models to help get there.
(Upates with Portofino model details under Key Insights.)
