-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Ferrari (RACE) posted Q1 adjusted EPS of EUR2.33 vs. EUR2.30 (+1%), short of the EUR2.37 consensus. The miss was due to weaker-than-expected margins, as net revenue rose 3% to EUR1.85B (EUR20M ahead of consensus) on higher prices, partially offset by a 4.4% drop in shipments. RACE's EBIT margin contracted 60 bps to 29.7% (40 bps shy of consensus). The revenue growth was supported by higher prices, while the decline in shipments was a function of planned model changeover activities. Looking at RACE's 4.4% Y/Y volume decline in Q1, the drop was entirely attributable to EMEA (-14%), as shipments in the other three regions were all higher. RACE maintained prior full-year guidance. RACE shares are currently trading 2% lower in pre-market trading following the miss. The miss was uncharacteristic for a company with one of the strongest earnings track records in the industry. In our view, RACE's lack of volume growth continues to present a challenge to margins given the high fixed cost nature of auto manufacturing.