Ferrari Lifts Annual Guidance as Supercar Maker Posts Record Profit

By Scott Kanowsky 

Investing.com -- Ferrari NV (BIT:RACE) has risen its full-year financial guidance and posted record quarterly earnings, as the supercar maker was boosted by positive foreign exchange impacts and stronger revenues from customers souping up their vehicles.

The Maranello, Italy-based company now expects adjusted earnings margin before interest, tax, depreciation, and amortization this year to come in at between 1.70-1.73%. That is up from Ferrari's prior annual outlook of between 1.65-1.70%. Net revenues are also seen increasing to €4.9B from €4.8B.

"2022 guidance revised upward on all metrics thanks to stronger contribution from personalizations as well as a tailwind from FX," Ferrari said in a statement, adding that these assumptions do not take into account potential trading conditions hit by COVID-19 pandemic restrictions.

For the second quarter, Ferrari reported a 22% increase in net income to €251M, thanks to a sharp uptick in shipments versus the previous year that helped offset higher research and development expenses. Diluted earnings per share jumped to €1.36, above analyst expectations.

Net revenues for the three months ended June 30 also jumped by nearly a quarter to €1.29B, beating estimates, supported in part by strengthening of the U.S. Dollar and Chinese yuan. Improved performance at the company's vaunted Formula 1 racing team also helped contribute to a surge in sponsorship, commercial, and brand revenues.

The results come as Ferrari attempts to revamp its long-term strategy to take advantage of the growing demand for electric vehicles. In June, the company said it expects as much as 60% of its fleet of cars will be hybrid and fully electric in four years.

Milan-listed shares in Ferrari were trading marginally lower following the release. They are down by more than 12% over the past one-year period.