Analysts’ Estimates for Ferrari’s 4Q17 Earnings



Existing trend

In 3Q17, Ferrari (RACE) reported a solid adjusted EPS (earnings per share) of 0.74 euros or ~$0.86. It reflected a jump of ~25.4% from its EPS of 0.59 euros in the corresponding quarter of the previous year. It was much higher than Wall Street analysts’ estimate of 0.68 euros or ~$0.79. Now, let’s look at analysts’ estimates for Ferrari’s 4Q17 earnings. We’ll discuss whether or not the positive trend in Ferrari’s earnings is expected to continue.

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Analysts’ estimates 

Wall Street analysts expect the existing positive trend in Ferrari’s earnings to continue in 4Q17. According to analysts’ estimates, Ferrari’s 4Q17 earnings should be ~0.71 euros or ~$0.87 per share. The estimate reflects a rise of 20.3% from its adjusted earnings of 0.59 euros per share in 4Q16.

Consistent demand from North America and Europe could be the key reason for the positive growth expectation.

2017 shipment guidance

The positive growth expectation in Ferrari’s 4Q17 earnings is also in line with the company’s guidance to deliver ~8,400 cars in fiscal 2017.

In the last three years, Ferrari’s management has focused on increasing the company’s annual car shipments. Ferrari is known to intentionally limit its annual car production volume to maintain exclusivity and scarcity. Despite the recent increase in Ferrari’s shipments, its annual sales are still just a fraction of other key auto giants’ (IYK) sales like General Motors (GM), Ford (F), and Fiat Chrysler (FCAU).

Next, we’ll discuss analysts’ estimates for Ferrari’s revenue in 4Q17.


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