Ferrari shares slide 5% despite solid Q3 results; deliveries drop, pressured by Chinese sales📉

Shares of Ferrari (RACE.IT), the Maranello, Italy-based sports carmaker, are losing nearly 5% today, although the quarterly report turned out to be very solid. Nevertheless, declining shipments (especially in China) and lower growth rates have given investors an excuse to realize gains, and Ferrari shares are retreating nearly 5% from near historical highs.

• Revenues totaled €1.644 billion (up 6.5% y/y) on total deliveries of 3,383 models (down 2.2% y/y). Adjusted earnings before taxes (EBIT) pointed to 467 million euros (+10.3% y/y), with an EBIT margin of 28.4%.
• Adjusted net income was €375 million, and adjusted diluted earnings per share were €2.08. Adj. EBITDA rose 7.1% year-on-year to €638 million, with a margin of 38.8%. Distribution of deliveries:

• EMEA (Europe, Africa and the Middle East): up 28 units,
• North and South America: down 26 units,
• China, Hong Kong and Taiwan: down 114 units,
• Other APAC regions: up 36 units.

• Revenues from sales of automobiles and parts amounted to €1.4 billion (+5.2% y/y). Revenues from sponsorship contracts and commercial activities increased 20.4% y/y, primarily due to new sponsors.
• The increase in sales result was partly due to new products, including the improved Daytona SP3 model and several 499P Modificata units
• Net debt at the end of Q3 was €246 million (a significant decrease from €441 million in Q2. R&D expenses declined by €11 million y/y, mainly due to lower depreciation of discontinued models. Selling and administrative expenses increased by €23 million y/y. Ferrari generated a total of €364 million in free cash flow.

On October 17, 2024, Ferrari unveiled the F80 model. The model will go into production in a limited run of 799 units. The company expects further revenue growth and increased spending on brand development. However, it has not issued very precise guidance for the current quarter or next year. It did, however, give full-year estimates for revenue, adjusted EBIT and earnings per share. The company expects costs to continue to rise and believes that improved performance in its industrial operations will be partially offset by capital expenditures and higher taxes.

Comparison of 2023 and expected 2024 results. An improvement can be seen, albeit a relatively small one while Ferrari's shares have risen more than 32% over the period. Source: Ferrari

Ferrari (RACE.IT chart, D1 interval)

The stock has today settled below the two, important exponential moving averages EMA100 and EM50, but is still nearly 10% short of testing the lower range of the price channel (around €380 per share).

Source: xStation5