Upcoming AWS Coverage on Tesla Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 16, 2017 / Active Wall St. announces its post-earnings coverage on Ferrari N.V. (NYSE: RACE). The Company posted its fourth quarter and fiscal 2016 financial results on February 02, 2017. The Italian super car maker surpassed market expectations. Register with us now for your free membership at:

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One of Ferrari's competitors within the Auto Manufacturers - Major space, Tesla, Inc. (NASDAQ: TSLA), announced on February 02, 2017, that it will release its financial results for Q4 and full year ended December 31, 2016 after market close on Wednesday, February 22, 2017. AWS will be initiating a research report on Tesla in the coming days.

Today, AWS is promoting its earnings coverage on RACE; touching on TSLA. Get our free coverage by signing up to:

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Earnings Reviewed

For the period ended December 31, 2016, Ferrari logged net revenues of EUR 836 million, up 12% from net revenues of EUR 744 million, and surpassing expectations of EUR 815 million. For FY16, Ferrari reported net revenues of Euro 3.11 billion up 8.8%, or 9.4% at constant currencies from FY15. The Company's revenues in cars and spare parts totaled Euro 2.18 billion up 5% versus prior year led by higher volumes of the 488 GTB, the 488 Spider, the F12tdf, the newly launched models GTC4Lusso and LaFerrari Aperta, the non-registered car FXX K, the strictly limited edition F60 America, along with higher contribution from its personalization programs and pricing increase in Q4 2016.

For FY16, Ferrari's Engines revenues were Euro 338 million, up 55% on a y-o-y basis and showed a significant increase mainly due to strong sales to Maserati and higher rental revenues from other Formula 1 teams. Sponsorship, commercial and brand revenues were Euro 488 million, up 11% on y-o-y basis, due to better 2015 championship ranking compared to 2014, higher sponsorship revenues and positive contribution from brand related activities.

Ferrari reported that adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in Q4 2016 rose to EUR 251 million, ahead of the EUR 225 million result expected by Wall Street's analysts. FY16 adjusted EBITDA increased 17.7% to the EUR 880 million, with 28.3% margin. The Company's adjusted EBIT was Euro 632 million, up 34% versus the prior year as a result of higher volume, on the back of the 488 family, the F12tdf, and the newly launched GTC4Lusso together with positive contribution from its personalization programs.

Ferrari reported Q4 2016 net profit of EUR 130 million, up 103%, compared to net revenue of EUR 55 million. On a per share basis, the Company posted EUR 0.59 per share, up 111% from EUR 0.28 per share in Q4 2015. Adjusted net profit for FY16 was Euro 425 million, up 37% on a y-o-y basis.

Shipment Details

For FY16, Ferrari's Shipments totaled 8,014 units, up 350 units, or 4.6%, versus prior year, driven by a 5% increase in sales of its 8 cylinder models (V8), led by the success of both the 488 GTB and the 488 Spider. Shipments of the 12 cylinder models (V12) were up 4% primarily attributable to the newly launched GTC4Lusso and LaFerrari Aperta, as well as the strong performance of the F12tdf.

Ferrari stated that sales from EMEA expanded by 8% with Italy, Germany, and France growing at double-digit pace. Rest of APAC increased by 3%, Americas showed a 2% increase while deliveries in Greater China were up only 1% due to Ferrari's decision to terminate the current distributor in Hong Kong in Q4 2016.

Cash Flow & Balance Sheet

Ferrari's Industrial free cash flow for the twelve months ended December 31, 2016, was Euro280 million, primarily driven by a strong increase in cash flow from operating activities, including a positive change from advances on the newly launched LaFerrari Aperta. The Company's net industrial debt at December 31, 2016, was reduced to Euro 653 million from Euro 797 million at December 31, 2015. The reduction was primarily due to the industrial free cash flow generation, partially offset by cash distribution to the holders of common shares and dividends paid to non-controlling interest.

FY17 Outlook

Ferrari, assuming FX consistent with current market conditions is expecting FY17 Shipments of 8,400 including supercars, net revenues greater than Euro 3.3 billion adjusted EBITDA greater than Euro 950 million and net industrial debt of Euro 500 million, including a cash distribution to the holders of common shares and excluding potential share repurchases.

Distribution proposal

Ferrari announced that subject to the approval of a cash distribution by the Board of Directors of the Company and to the adoption of the Company's 2016 Annual Accounts by the Shareholders at the Annual General Meeting, the Company intends to make a cash distribution to the holders of common shares of Euro 0.635 per common share, corresponding to a total cash distribution to shareholders of approximately Euro 120 million.

Financial transactions

On December 14 2016 Ferrari Financial Services Inc. renewed a USD 100 million unsecured bank loan facility of which USD 25 million were drawn. On December 16th, 2016 Ferrari N.V. prepaid a second tranche of Euro 300 million out of a Euro 1.5 billion Term Loan provided by a syndicate of banks in 2015, further reducing the outstanding to Euro 900 million.

On December 28, 2016, Ferrari Financial Services Inc. performed a revolving securitization program for funding of up to USD 120 million by pledging credit lines to Ferrari customers secured by personal vehicle collections and personal guarantees in the United States as collateral. The notes bear interest at a rate per annum equal to the aggregate of LIBOR plus a margin of 150 basis points.

On December 30, 2016 Ferrari N.V. and Ferrari Financial Services Inc. paid Euro 92 million and USD 9 million, respectively, as a first installment calculated on the outstanding Euro 900 million Term Loan originally provided by a syndicate of banks in 2015 for an initial amount of Euro 1.5 billion.

Stock Performance

On Wednesday, February 15, 2017, the stock closed the trading session at $66.01, slightly down 0.27% from its previous closing price of $66.19. A total volume of 363.45 thousand shares have exchanged hands. Ferrari's stock price rallied 23.94% in the last three months, 37.72% in the past six months, and 70.97% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 13.54%. The stock is trading at a PE ratio of 34.22 and has a dividend yield of 0.77%.

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SOURCE: Active Wall Street