{"id":1500532,"date":"2024-11-05T14:25:00","date_gmt":"2024-11-05T19:25:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1500532"},"modified":"2024-11-05T14:25:00","modified_gmt":"2024-11-05T19:25:00","slug":"ferrari-shares-skid-on-crashing-deliveries-in-china","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/ferrari-shares-skid-on-crashing-deliveries-in-china\/1500532\/","title":{"rendered":"Ferrari Shares Skid On Crashing Deliveries In China\u00a0\u00a0"},"content":{"rendered":"

Ferrari Shares Skid On Crashing Deliveries In China\u00a0\u00a0<\/span><\/p>\n

\n

Ferrari shares are sliding in premarket trading in New York as third-quarter shipments of its luxury supercars to China plummeted, with the industry-wide downturn finally catching up to the\u00a0Italian automaker. The broader luxury downturn has shown signs of stress, with industry fashion giants LVMH Mo\u00ebt Hennessy Louis Vuitton<\/a> and Gucci’s parent company Kering<\/a> cautioning about a slowdown in China and other top markets in the world.\u00a0<\/p>\n

The Italian luxury sports car maker reported<\/a> a third-quarter\u00a0profit that was slightly better than expected versus analysts tracked by Bloomberg.<\/p>\n

Shipments were a major focus. The\u00a0Italian manufacturer was battered by a 29% plunge in shipments to the China region and a 2.4% decline in deliveries to the US.\u00a0<\/p>\n

Here’s a snapshot of quarterly results:<\/p>\n

Adjusted Ebitda EU638 million, +7.2% y\/y, estimate EU633.8 million (Bloomberg Consensus)<\/em><\/p>\n

Adjusted Ebit EU467 million, +10% y\/y, estimate EU463.3 million<\/em><\/p>\n

Adjusted Ebit margin 28.4% vs. 27.4% y\/y, estimate 28%<\/em><\/p>\n

Revenue EU1.64 billion, +6.5% y\/y, estimate EU1.64 billion<\/em><\/p>\n

Cars and spare parts revenue EU1.40 billion, +5.3% y\/y, estimate EU1.42 billion<\/em><\/p>\n

Sponsorship, commercial and brand revenue EU174 million, +20% y\/y, estimate EU161.7 million<\/em><\/p>\n

Adjusted net income EU375 million, +13% y\/y, estimate EU369.8 million<\/em><\/p>\n

Adjusted diluted EPS EU2.08 vs. EU1.82 y\/y, estimate EU2.03<\/em><\/p>\n

Industrial free cash flow EU364 million, estimate EU342.7 million<\/em><\/p>\n

Deliveries 3,383, -2.2% y\/y, estimate 3,469<\/strong><\/p>\n

EMEA deliveries 1,426 units, +2% y\/y, estimate 1,486<\/em><\/p>\n

Americas Deliveries 1,070 units, -2.4% y\/y, estimate 1,097<\/em><\/p>\n

Mainland China, Hong Kong and Taiwan 281 units, -29% y\/y, estimate 348.4<\/em><\/strong><\/p>\n

Rest of APAC deliveries 606 units, +6.3% y\/y, estimate 582.27<\/em><\/p>\n

Ferrari noted that despite\u00a0lower shipments in the quarter,\u00a0increased client customization requests helped drive additional revenue.\u00a0<\/p>\n

“The third quarter once again shows growing results for Ferrari, driven by a strong product mix and increased personalization,” Benedetto Vigna, CEO of Ferrari wrote in a statement.\u00a0<\/p>\n

<\/a><\/p>\n

Vigna said,\u00a0“It confirms our commitment to deliver on the promises we made at our Capital Markets Day in 2022, along with the exceptional order book visibility well into 2026 <\/strong>…”\u00a0<\/p>\n

Vigna’s comments\u00a0renewed confidence in guidance that the company upgraded in August, which it plans to hit.\u00a0<\/p>\n

In markets, Ferrari shares in New York slid 4%. On the year, shares have bucked the luxury slowdown, up nearly 41% (as of Monday’s close).\u00a0<\/p>\n

<\/a><\/p>\n

Goldman’s George Galliers and Sian Keegan pointed out to clients this morning:<\/p>\n

Guidance reiterated a potential source of disappointment<\/em><\/strong> – Ferrari has raised guidance at 3Q every year since 2016, with the exception of 2018. Hence, the lack of a raise today may be seen as disappointing. Ferrari reiterated its FY24 guide, adding that it had even greater confidence despite persistent cost inflation. Cons EBITDA\/EBIT estimates presently sit c.2.5%\/2.6% ahead of the low end of Ferrari’s guide, meanwhile, the low end also implies 4Q adj. EBIT cuts of c.11%. As per prior years, we expect that Ferrari’s guidance remains conservative. Ferrari commented that its order book stretches into 2026 and that the new F80 is fully allocated. <\/em><\/p>\n

The analysts maintained a “Neutral” rating on the stock with a 12-month price target of \u20ac470\/$508.<\/p>\n

<\/a><\/p>\n

The\u00a0slowdown in luxury spending is very concerning because it signals weakness and uncertainty in\u00a0consumer confidence, especially among high-net-worth individuals who typically drive demand in these high-end markets. Maybe that’s why\u00a0Senator Elizabeth Warren called for the\u00a0Federal Reserve to deliver a 50 basis point cut later this week…\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 11\/05\/2024 – 09:25<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/ferrari-shares-skid-crashing-deliveries-china<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Ferrari Shares Skid On Crashing Deliveries In China\u00a0\u00a0 Ferrari shares are sliding in premarket trading in New York as third-quarter shipments of its luxury supercars…<\/p>\n","protected":false},"author":0,"featured_media":1500533,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1500532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6im8","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2024\/11\/2024-11-05_08-45-39-wYobuQ.png","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1500532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1500532"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1500532\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1500533"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1500532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1500532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1500532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}