Ferrari N.V. (NYSE:RACE) shares are trading lower after the company reported a gloomy outlook.
The company reported first-quarter FY24 sales growth of 11% year-on-year to €1.585 billion, beating the analyst consensus estimate of €1.572 billion.
Cars and spare parts revenue rose 11.4% Y/Y, and Sponsorship, commercial and brand revenues increased by 11.6%. Total shipments remained flat at 3,560 units.
Adjusted EBITDA rose 12.7% Y/Y to €605 million, and the margin expanded 60 basis points Y/Y to 38.2%.
Net profit for the quarter increased 19% to €352 million. EPS of €1.95 beat the consensus estimate of €1.85.
Operating cash flow totaled €505 million with a €310 million free cash flow. As of March-end, the company was in a Net Industrial Cash position of €38 million for the first time, compared to Net Industrial Debt of €99 million as of December-end.
Ferrari held €1.37 billion in cash and equivalents as of March-end.
Outlook: Ferrari sees FY24 net revenues to be greater than €6.4 billion against an estimate of €6.56 billion.
The company expects FY24 adjusted EPS of greater than or equal to €7.50 versus an estimate of €7.77. Adjusted EBITDA of ≥€2.45 billion with a margin of ≥38%.
Price Action: RACE shares are trading lower by 3.16% at $414.15 in premarket at the last check Tuesday.