Ferrari stock surges on upbeat 2024 profit forecast as luxury demand remains strong
👉 $RACE (Ferrari NV) shares surged after the Italian luxury automaker reported Q4 sales results that topped expectations and that it sees momentum continuing in 2024. The Maranello-based automaker is also set to have signed Formula 1 seven-time champion Lewis Hamilton to its racing team, giving Ferrari fans (and some investors) even more reason to cheer.
👉 For the quarter, Ferrari reported revenue of €1.52 billion, topping estimates of €1.50 billion. Ferrari said its sales jumped 11% from a year ago. On the profitability front, Ferrari reported adjusted EBITDA of €558 million , slightly missing estimates of €560 million. For the year, Ferrari’s net profit surged 34%, to a record €1.257 billion.
👉 What's exciting investors is Ferrari’s guidance for 2024, with the automaker seeing revenue climb to €6.4 billion with adjusted EBITDA of €2.45 billion, as the automaker sees luxury demand staying strong.
👉 “2023 was a very successful year, during which we strengthened our brand through a number of achievements reflected in our unprecedented financial results,” Ferrari CEO Benedetto Vigna said in a statement.
👉 Ferrari’s long-term 2026 target includes a product mix of 40% gas powered cars and 60% hybrid cars, and EBITDA target of €2.5 billion to €2.7 billion euros with an EBITDA margin of 38%-40%.
👉 From a deliveries standpoint, Ferrari shipped 13,663 cars in 2023, up 3% from a year ago, with deliveries to the Americas driving growth, up 10.6%. Ferrari said gains were driven by its new Purosangue SUV and its 296 and SF90 hybrid sports cars. Ferrari will launch its first full EV in Q4 of 2025 and is building a new factory in Maranello to assemble hybrid and full-electric vehicles.
👉 One piece of news that is upstaging Ferrari’s strong quarterly and year-end results is confirmation of a massive driver lineup change with its Formula 1 team, Scuderia Ferrari. It confirmed seven-time champion Lewis Hamilton is making a switch from the Mercedes’ F1 team, where he has driven since 2013, to Scuderia Ferrari for 2025.
👉 In addition to his seven world championships, Hamilton has the most wins of any driver in F1 history and would be joining the most storied team in the F1 paddock. Scuderia Ferrari, operating since 1929, has 16 constructors’ world championships, but hasn’t won the title since 2008.
Read more âť“ finance.yahoo.com/news/ferrari-stock-surges-on-upbeat-2024-profit-forecast-as-luxury-demand-remains-strong-184640097.html
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