Could Ferrari’s 4Q17 Revenues Impress Investors?



Existing trend in Ferrari’s revenues

In 3Q17, Ferrari (RACE) reported net revenues of 836 million euros or ~$975 million. The company’s revenues increased ~6.7% from 783 million euros in 3Q16.

In 3Q17, Ferrari shipped 2,046 car units globally, which was ~3.4% higher than 1,978 units shipped in 3Q16. The higher shipments increased Ferrari’s revenues.

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Quick review

Ferrari’s 3Q17 shipments to Greater China decreased 15.6% compared to 3Q16. The company’s Greater China segment includes China, Hong Kong, and Taiwan. Ferrari’s 3Q17 shipments to China increased by mid-single digits on a YoY (year-over-year) basis.

The company also reported a 5% YoY increase in its shipments to the Americas segment, which stood at 736 car units in 3Q17. Note that Ferrari reports its results for North America and South America combined under the Americas segment.

For Ferrari, North America is the largest single market. Among key auto companies (IYK), General Motors (GM), Ford (F), and Toyota Motor (TM) also generate a significant portion of their revenues from the North America region.

4Q17 revenues estimates

Analysts expect Ferrari’s 4Q17 revenues to be 874 million euros or $1.07 billion. It would reflect a modest increase of 4.5% from its 4Q16 revenues of 836 million euros.

Similarly, analysts expect the company’s fiscal 2017 revenues to be 3.44 billion euros or ~$4.23 billion—up 10.8% from the previous year.

Ferrari’s higher fiscal 2017 shipment guidance could be why analysts expect the positive revenue trend to continue.

Next, we’ll look at analysts’ estimates for Ferrari’s 4Q17 margins.


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