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Tale of the Tape

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Ferrari (RACE) Q3 Earnings Beat Estimates, Shares Rise
November 07, 2016

FCAU RACE

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Ferrari N.V. (RACE - Free Report) is an Italian luxury sports car manufacturer. The company was a subsidiary of Fiat Chrysler Automobiles N.V. (FCAU - Free Report) for more than a decade before it became an independent entity in Jan 2016.

Ferrari’s strong brand value is its biggest tailwind. The company is also consistently expanding its global presence.

Ferrari has witnessed consistent revenue growth in the last 10 years. While its major revenues are generated from the sales of luxury cars, the company also sells engines and Ferrari brand merchandise. Further, the company owns a Formula 1 racing team as well as theme parks, which are also good sources of revenue.

However, expenses related to the global Takata airbag inflator recalls and negative shift in product mix in some recent quarters are concerns. As a result, investors have been eagerly awaiting Ferrari’s latest earnings report. Let’s take a quick look at this Italian automobile giant’s third-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Ferrari for the third quarter inched down by 3 cents over the past 30 days.

In the last quarter, the company reported a positive earnings surprise of 32.61%.

FERRARI NV Price and EPS Surprise

 

FERRARI NV Price and EPS Surprise | FERRARI NV Quote

Zacks Rank

Ferrari currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Ferrari raked in adjusted earnings of €0.59 per share (66 cents per ADR) that surpassed the Zacks Consensus Estimate of 54 cents. Moreover, adjusted earnings were 18% higher than the year-ago quarter.

Revenues

Ferrari logged revenues of €783 million ($873.8 million), 8.3% higher than a year-ago.

Key Stats/Developments to Note

Ferrari reported a 1% increase in shipments to 1,978 cars in the third quarter.

The company expects total shipments for 2016 to be around 8,000, which is higher than 7,664 units recorded in 2015.

Market Reaction

Ferrari’s shares have gained 4.01% so far, following the release. Clearly, the initial reaction to the release is positive.

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