Ferrari (RACE) stock slipped on Tuesday after the Italian luxury automaker reported third quarter results that were in line with expectations but deliveries that slumped compared to a year ago. Ferrari does expect strengthening sales in Q4 to boost full-year results.

For the quarter, Maranello-based Ferrari reported revenue of €1.64 billion ($1.79 billion), matching estimates as compiled by Bloomberg and up 7% versus a year ago. Adjusted EPS for Q3 came in at €2.08 ($2.27), also matching estimates, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was €638 million ($695 million), up 7% and slightly ahead of Street estimates.

Despite growth in revenue and profit, deliveries in the quarter dropped 2% versus a year ago to 3,383 units. While most regions saw slight sales growth (led by the Americas at 4%), China shipments tumbled 22%.

Ferrari stock trading on the NYSE fell over 7% in midday trade.

Despite somewhat lackluster Q3 results and a drop in deliveries, Ferrari reaffirmed its full-year guidance. Ferrari still sees revenue for the year climbing to €6.55 billion ($7.14 billion) with adjusted EBITDA of €2.50 billion ($2.73 billion), as the automaker sees demand in other regions, and its product portfolio, driving results.

“The third quarter once again shows growing results for Ferrari, driven by a strong product mix and increased personalization," said Benedetto Vigna, CEO of Ferrari. "It confirms our commitment to deliver on the promises we made at our Capital Markets Day in 2022, along with the exceptional order book visibility well into 2026.

The Ferrari Purosangue SUV, the Roma Spider convertible, and the 296 GTS sports car drove deliveries in the quarter, Ferrari said. The company noted SF90 XX Stradale supercar deliveries also rose in the quarter, with the sister SF90 XX Spider beginning deliveries.

For Ferrari’s even higher-end cars, customer allocations for the ultra-exclusive Daytona SP3 (MSRP $2.23 million) rose versus the prior year, as expected. The company also debuted its latest hypercar last month, the F80, with all 799 already spoken for despite a price of €3.6 million, or $3.9 million.

Ferrari follows a string of other European automakers like Mercedes, Porsche, and others experiencing sales slumps, especially in Asia, as luxury demand softens in some parts of the world.

Porsche saw 25% of sales stemming from China a year ago (60,747 units) through Q3; those sales fell 29% in the same period this year, down to 43,280 units.

Luckily for Ferrari, China only accounts for 8.3% of all shipments, whereas a year ago Mercedes had a whopping 37% from the region.