Ferrari forecast turbo-charged by Portofino, Superfast sales

Ferrari forecast turbo-charged by Portofino, Superfast sales

MILAN (Reuters) – Strong sales of Ferrari’s (RACE.MI) Portofino and 812 Superfast models helped the Italian luxury carmaker raise its 2019 forecasts on Monday, powering its shares to a record high.

FILE PHOTO: The new Ferrari Portofino is displayed during the Frankfurt Motor Show (IAA) in Frankfurt, Germany September 12, 2017. REUTERS/Ralph Orlowski/File Photo

Ferrari’s Milan-listed shares rose as much as 7.4% to an all-time high of 155.15 euros after it reported “solid” third quarter results, and were up 6.1% by 1330 GMT.

The ‘Cavallino Rampante’, or ‘Prancing Horse’, known for its racing pedigree and roaring engines, is pursuing an aggressive roll-out of new premium models to sustain its solid growth.

Ferrari said its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would be around 1.27 billion euros ($1.42 billion) for the full year, topping a previous forecast of 1.2-1.25 billion euros.

The carmaker also increased its outlook on 2019 revenue to about 3.7 billion euros, from a previous forecast of more than 3.5 billion euros, and on its industrial free cashflow.

“We expect the stock to rise but (the) focus will be on 2020,” Morgan Stanley analysts said in a note, adding that Ferrari’s results were better than expected from the top line down to earnings per share (EPS).

Ferrari will present its latest new model in Rome next week, taking the total to five in 2019, including the F90 Stradale, its first hybrid car in series-production to be available in more than a very restricted number.

In the third quarter output rose 9.4% year-on-year to 2,474 vehicles, driven by a 9.5% increase in sales of 8-cylinders models, such as the Portofino, and a 8.9% rise in higher margin 12-cyilinder models, such as the 812 Superfast.

The first deliveries of the Monza SP1 and SP2 had also begun toward the end of September, Ferrari said in a statement.

To support Ferrari’s growth and profitability, Chief Executive Louis Camilleri’s strategy plan from September last year promised to launch 15 new models between 2019 and 2022.

In the July-September period, Ferrari’s adjusted EBITDA rose 11% to 311 million euros, broadly in line with analyst expectations, according to a Reuters survey.

Margins on core earnings rose by 70 basis points year on year to 33.9%, close to Ferrari’s 34% target for the full-year.

Ferrari said its management will present details on its finalised brand diversification strategy in an analyst call later on Monday.

Reporting by Giulio Piovaccari; Editing by Alexander Smith

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