Ferrari (NYSE:RACE) today reported third-quarter earnings that beat Wall Street estimates after fully restoring production capacity that had been disrupted by the coronavirus earlier in 2020.
Ferrari's third-quarter adjusted earnings before interest, tax, depreciation and amortization totaled 330 million euros ($386 million), ahead of the 300-million-euro average estimate of analysts polled by Bloomberg.
Revenue of 888 million euros ($1.04 billion) fell slightly short of Wall Street's expectations, as the company's share of Formula 1 racing revenue was hurt by limited attendance and a reshuffled racing schedule amid the pandemic.
But despite the decline in overall revenue, a strong product mix (27% of cars delivered in the quarter were high-margin V-12 models, a high percentage) helped the company to a stout 25% operating profit margin, up slightly from the third quarter of 2019.
Ferrari shipped 2,313 cars in the third quarter, down 6.5% from a year ago. The decline was due to supply issues, executives said, noting that the company's factory changed over to two new models during the quarter. CEO Louis Camilleri said that orders for both of those models -- the Roma coupe and the SF90 Stradale hybrid supercar -- have been strong, and that the company's order book remains in very good shape generally.
CFO Antonio Picca Piccon said that Ferrari now expects to hit the high end of the full-year guidance ranges it provided in August, with revenue of roughly 3.4 billion euros (versus 3.8 billion euros in 2019) and adjusted earnings per share of about 2.80 euros (versus 3.71 euros last year).
Noting that Ferrari lost about 2,000 units of production during its seven-week shutdown earlier this year, Picca Piccon said the company now expects to make up about 500 units of that by the end of 2020.