Ferrari NV’s (NYSE: RACE) shares gained over 5% in the morning trade on Tuesday after the company surpassed estimates on earnings for the first quarter of 2019. Revenues were also well above the target set by the street.
The top line grew 13% to EUR 940 million from last year, as total shipments jumped 22% to 2,610 units. Adjusted net profit improved 22% to EUR 180 million compared to the prior-year quarter. EPS, both on a reported and adjusted basis, grew 22% to EUR 0.95.
During the quarter, shipments grew across all regions with the highest growth of 79% in Mainland China, Hong Kong and Taiwan. Revenues grew 18% year-over-year in Cars and spare parts. However, revenue from Engines and Sponsorship, commercial and brand fell 23% and 1% respectively.
The company reaffirmed its guidance for the full year. For full-year 2019, net revenues are expected to grow over 3% to more than EUR 3.5 billion. Adjusted EPS is expected to grow around 6% to between EUR 3.50 and EUR 3.70. Industrial free cash flow is expected to grow over 10% to EUR 0.45 billion.
In September last year, Ferrari outlined its long-term financial targets. These include plans to increase its dividend payout ratio to 30%, along with a share repurchase program of EUR 1.5 billion to be executed over the 2019-2022 period in relation to the growth of its industrial free cash flow.