Ferrari shares race ahead after fast start to 2019

Reuters Business 07 May 2019 05:08

MILAN (Reuters) - Ferrari beat forecasts on Tuesday with a 14 percent rise in first-quarter core earnings, boosting its shares on growing expectations the Italian luxury carmaker might soon raise its full-year financial targets.

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

Milan-listed Ferrari shares rose as much as 5.7 percent on the results, which were driven by strong sales of the 8 cylinder Portofino model and the 812 Superfast among higher-margin 12 cylinder models. The stock was up 4.4 percent at 1215 GMT.

Ferrari stuck to its full-year targets, but analysts said an increase might be in store.

Current targets look “extremely conservative”, Morgan Stanley analysts said in a note.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at 311 million euros ($348 million) in January-March, above the average forecast of 284 million euros in a Reuters poll of analysts.

Jefferies analysts described the results as “impressive”, adding the first-quarter performance more than supported current consensus expectations for the year, which were already at the top end of the company’s guidance range for adjusted EBITDA. Based on the results, revenue growth might come in at around 7 percent, well above the current annual forecast, they added.

Last year’s plan set a target for adjusted EBITDA in excess of 1.3 billion euros in 2020, but Chief Executive Louis Camilleri said earlier this year he was “very bullish” and might raise it, betting on new models and special editions at premium prices to lure customers.

Additional reporting by Michael Shields; Editing by Mark Potter

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