By Scott Kanowski
Investing.com — Ferrari NV (BIT:RACE) raised its full-year financial guidance and posted record quarterly profits as the supercar maker was boosted by positive currency effects and higher revenue. important from customers who inflate their vehicles.
The Maranello, Italy-based company now expects the adjusted profit margin before interest, taxes, depreciation and amortization this year to be between 1.70 and 1.73%. That’s up from Ferrari’s previous full-year outlook of between 1.65 and 1.70 percent. Net revenues are also expected to increase to €4.9 billion from €4.8 billion.
“The 2022 guidance has been revised upwards across all metrics thanks to a stronger contribution from customizations as well as a tailwind from FX,” Ferrari said in a statement, adding that these assumptions do not take into account potential trading conditions impacted by restrictions related to the COVID-19 pandemic.
For the second quarter, Ferrari recorded a 22% increase in its net profit to 251 million euros, thanks to a strong increase in deliveries compared to the previous year which made it possible to compensate for the increase in research and development. Diluted earnings per share jumped to €1.36, above analysts’ expectations.
Net revenue for the three months ended June 30 also jumped nearly a quarter to 1.29 billion euros, beating estimates, supported in part by the strengthening US dollar and Chinese yuan. The improved performance of the company’s vaunted Formula 1 racing team also contributed to an increase in sponsorship, commercial and brand revenue.
The results come as Ferrari tries to revamp its long-term strategy to take advantage of growing demand for electric vehicles. In June, the company said it expected 60% of its car fleet to be hybrid and fully electric within four years.
Milan-listed Ferrari shares were trading slightly lower after the release. They are down more than 12% in the last one-year period.
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