Ferrari Offers Conservative Profit Outlook as Sales Rebound

Ferrari NV forecast an underwhelming rise in earnings this year as the luxury carmaker works through disruption from the pandemic on top of unexpectedly searching for a new chief executive officer.

  • Ferrari shares fell after the supercar maker projected an increase in 2021 earnings that analysts including Citi called “somewhat disappointing.”
  • Ferrari has set up search committee to identify a new CEO after Louis Camilleri resigned in December, Chairman and interim CEO John Elkann said Tuesday on a conference call.

Key Insights

  • The detailed guidance for the year contrasts with the relatively vague outlook given by Tesla Inc. last week. The Model 3 maker said only that it expected its operating margin to grow over time rather than give a profit forecast or specific delivery target for the year.
  • Ferrari sees adjusted earnings before interest, tax, depreciation and amortization of 1.45 billion euros ($1.74 billion) to 1.5 billion euros this year. That compares with an average analysts’ estimate of 1.48 billion euros.
  • Adjusted Ebitda rose to 372 million euros during the fourth quarter. That topped analysts’ average estimate of 364 million euros.
  • The order book is at record levels, up 22% versus last year and covering the entire 2021 and beyond, Ferrari CFO Antonio Picca Piccon said.
  • Camilleri’s abrupt resignation has prompted the second leadership crisis in a matter of years, as the company goes through the complex and costly process of electrifying its fleet.

Market Reaction

  • Ferrari shares fell as much as 5.1% in U.S. trading, and declined 4.7% to $206.77 at 11:04 a.m. in New York.

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  • The company will hold a capital markets day in the first-half of 2022.
  • “We are obviously not satisfied with our current Formula 1 results, and will be working with humility and dedication to change them,” Elkann said.
  • Ferrari Sees 2021 Adj Ebitda EU1.45B to EU1.50B, Est. EU1.48B
  • Bloomberg Intelligence’s outlook on Ferrari

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