Italian luxury automobile manufacturer, Ferrari posted a 38 percent rise in fourth-quarter adjusted core earnings and gave a strong guidance for 2017.
Ferrari, in a statement, last week, said that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in October-December rose to 251 million euros ($271 million).
Sales were up 12 percent to 836 million euros, above expectations of 815 million euros, helped by sales of its 12-cylinder models such as the GTC4Lusso and the newly launched LaFerrari Aperta.
For 2017, Ferrari forecast an adjusted EBITDA of more than 950 million euros, sales above 3.3 billion euros and net debt falling to around 500 million euros from 653 million euros at the end of last year.
Analysts had forecast a 2017 adjusted EBITDA of 921 million euros and sales of 3.29 billion euros.
Ferrari shares raced to a new high on Thursday on the news. Its Milan-listed shares earlier Thursday rose more than 4 percent to 60.75 euros, the highest since their debut in January 2016. In New York, the shares rose 4 percent to close at $64.65.
Spun off from Fiat Chrysler, Ferrari has been under pressure to show it can increase profits without the backing of a large parent and lift sales without sacrificing the brand’s exclusive status.
Ferrari will celebrate its 70th anniversary this year with a series of tailor-made cars, all inspired by iconic models from its past. Overall, the group plans to ship around 8,400 vehicles in 2017, getting closer to the 9,000 goal it has set for 2019.
