US Markets
Thursday, February 1st, 2024 3:09 pm EDT
Key Points
- Record-Breaking Financial Performance: Ferrari exceeded Wall Street’s expectations in both top- and bottom-line earnings for Q4, concluding a remarkable year with a net profit of 1.26 billion euros for 2023. The adjusted EBIT for the year reached 1.62 billion euros, including a fourth-quarter performance of 372 million euros, setting annual records for the luxury sports car manufacturer.
- Revenue and Shipments Growth: Ferrari experienced significant financial growth, with a 17% increase in revenue for the year, reaching 5.97 billion euros. The fourth quarter alone saw an 11% rise compared to the same period in 2022, amounting to 1.37 billion euros. Additionally, Ferrari’s total shipments increased by 3% in 2023, totaling 13,663 vehicles, including 3,245 units delivered in the fourth quarter.
- Optimistic Forecast and Stock Performance: The company anticipates surpassing its 2023 records in 2024, projecting revenue exceeding 6.4 billion euros and an adjusted per-share profit of at least 7.50 euros, with an adjusted EBIT margin of at least 38%. Despite expectations of adjusted profit margins in line or slightly lower than 2023, this optimistic outlook led Ferrari’s shares to reach a new 52-week high, rising around 10% to over $380 per share on the New York Stock Exchange.
Ferrari concluded an exceptional year, surpassing Wall Street expectations in both top- and bottom-line earnings for the fourth quarter, marking a record-breaking period for the luxury sports car manufacturer. The company reported a net profit of 1.26 billion euros ($1.36 billion) for 2023, with 294 million euros ($317.9 million) generated in the fourth quarter alone. Furthermore, the adjusted earnings before interest and taxes (EBIT) for the year reached 1.62 billion euros ($1.75 billion), including 372 million euros ($402.3 million) in the last quarter, setting annual records. Ferrari’s revenue for the year rose by 17% to 5.97 billion euros ($6.46 billion), with an 11% increase in the fourth quarter compared to the same period in 2022, reaching 1.37 billion euros.
Anticipating sustained success, Ferrari forecasts even more robust results in 2024, projecting revenue exceeding 6.4 billion euros ($6.9 billion), an adjusted per-share profit of at least 7.50 euros, and an adjusted EBIT margin of at least 38%. Despite expectations of adjusted profit margins remaining in line or slightly lower than 2023, Ferrari’s optimistic outlook drove its shares to a new 52-week high during Thursday morning trading, rising approximately 10% to over $380 per share on the New York Stock Exchange.
Examining the fourth-quarter performance against LSEG estimates, Ferrari outperformed with adjusted earnings per share of 1.62 euros compared to the expected 1.50 euros, and revenue of 1.523 billion euros exceeding the projected 1.506 billion. Ferrari’s total shipments increased by 3% in 2023, reaching 13,663 vehicles, including 3,245 units delivered in the fourth quarter.
Ferrari’s CEO, Benedetto Vigna, expressed confidence in the company’s trajectory, stating, “We now have a very important year ahead of us in the execution of our business plan, which continues on schedule along its carefully planned path.” Vigna highlighted the record-breaking 2023 results, ambitious 2024 projections, and strong visibility in the order book, providing the company with increased confidence in achieving the high-end targets for 2026.
In a separate development, reports emerged suggesting that Formula 1 star Lewis Hamilton is on the verge of a surprising move from Mercedes to Ferrari’s racing team for the 2025 season. The potential shift adds an intriguing dimension to Ferrari’s outlook and future prospects in the competitive world of Formula 1.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/01/ferrari-race-q4-2023-earnings.html
