8:20 AM, Nov 5, 2018 — Automobile manufacturer Ferrari (RACE) posted weaker-than-expected results for its third quarter on Monday as a decline in engine sales softened modest year on year growth in revenues.
The Italian manufacturer of sports cars generated revenue worth 838 million euros ($952.9 million), up from 836 million euros a year earlier but shy of the consensus estimate of analysts polled by Capital IQ for 864.5 million euros.
The rise in revenue was supported by a slight increase in sales of cars and spare parts to 616 million euros compared to 605 million euros a year earlier thanks to higher volumes together with pricing and deliveries of the company’s limited edition Ferrari J50, according to a results presentation document.
The company said that there had been a negative mix due to higher V8 models as well as lower sales of LaFerrari Aperta, which is finishing its limited series run. Sales of engines, meanwhile, edged down to 70 million euros from 88 million euros a year earlier which the company attributed to a decrease in sales to Maserati due to lower engine volumes.
Revenue from the company’s Sponsorship, commercial and brand business segment increased to 128 million euros from 124 million euros a year earlier buoyed by higher 2017 championship ranking compared to 2016.
Total shipments rose by 10.6% to 2,262 units during the quarter, supported by a 7.9% increase in V12 models and an 11.4% increase in V8 models.
Adjusted diluted earnings per share were 0.77 euros, up from 0.74 euros a year earlier but also below the Street’s average projection of 0.97 euros.
For the full year, the company confirmed that it expects shipments of over 9,000 vehicles, net revenues of more than 3.4 billion euros and capital expenditure of approximately 650 million euros.
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