MILAN, Nov 2 (Reuters) – Luxury sports car maker Ferrari (RACE.MI) said on Wednesday it was improving its forecasts for full-year results, including for core earnings, after beating expectations in the third quarter, but took a more cautious tone on margins.
Ferrari said its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would grow this year to over 1.73 billion euros, versus an already improved forecast of 1.70 to 1.73 billion euros it provided three months ago.
But the company added margin on adjusted EBITDA was now seen at around 35% for this year, versus a previous guidance of over 35%.
It said industrial costs and research and development expenses weighed for an additional 34 million euros ($33.7 million) on its core result in the past quarter mainly due to higher depreciation and amortization and cost inflation.
Milan listed shares in the company fell as much as 3.5%, after results were released. By 1345 GMT they were down 2.4%.
Analysts at Morgan Stanley said in a note it would have been a surprise if Ferrari had not improved its forecasts for this year.
“Full year 2023 should see taiwinds from volume, price/mix and forex,” the added.
In the third quarter, adjusted EBITDA rose 17% to 435 million euros, supported by a double-digit increase in shipments. The result topped analyst expectations of 418 million euros, according to a Reuters poll.
Foreign exchange, including hedging contracts, had a positive effect on the result, while price mix weighed.
“We continue to manage an outstanding order book: with the exception of few models, our entire range is sold out,” Ferrari Chief Executive Benedetto Vigna said in a statement.
Shipments rose in all regions except in EMEA in the July-September period, driven by the ramp-up phase of the six-cylinder hybrid 296 GTB and of the 12-cylinder limited series 812 Competizione model.
With a 73% increase, the China, Hong Kong and Taiwan region scored the largest shipment growth in the quarter.
($1 = 1.0091 euros)
Reporting by Giulio Piovaccari; Editing by Keith Weir, Jonathan Oatis and Angus MacSwan
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