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MILAN (Reuters) – Ferrari (NYSE:RACE) stuck to its main 2021 targets on Monday, despite tripling second-quarter core profits as shipments recovered from pandemic-hit trading in the same period last year.
The luxury carmaker increased its industrial free cash flow guidance to around 450 million euros ($535 million) this year, up from its previous forecast of around 350 million euros.
But it left forecasts for net revenues and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) unchanged, despite saying earlier this year it was “confident” of reaching the top end of its 2021 guidance.
Ferrari’s Milan-listed shares fell as much as 3.45% after the results, but by 1205 GMT had pared losses to trade down 1.3%.
A Milan-based analyst said the improvement in the free cash flow forecast was broadly discounted and second-quarter results did not provide fresh impetus for the shares after their recent strong performance. They have risen 10.5% since mid-June.
Ferrari’s new CEO, technology industry veteran Benedetto Vigna, will start on Sept. 1.
With 26-years of experience in the chip industry, he will have to drive the company, known for its ‘Prancing Horse’ logo and roaring, high-octane engines, into a new era of electric powertrains.
The task looks even more challenging after the European Union last month proposed an effective ban on the sale of new petrol and diesel cars from 2035, aiming to speed up the switch to zero-emission electric vehicles as part of a broad package of measures to combat global warming.
Ferrari said it would hold a Capital Market Day next year, on June 16.
“It’s almost one year after the new CEO starts his job. Looks like he needs a lot of time to come up with some brilliant idea for Ferrari’s future,” the analyst said.
In the second quarter, Ferrari’s adjusted EBITDA came in at 386 million euros, from 124 million euros a year earlier.
The result was just ahead of analysts’ expectations of 373 million euros, according to a Reuters poll.
Quarterly revenues were up 81% to 1.035 billion euros, with shipments driven by cars from the 8-cylinder F8 family and the more powerful 812 GTS model, while the hybrid SF90 Stradale and the Roma Grad Tourer reached global distribution.
($1 = 0.8412 euros)
