Car key for the Ferrari Purosangue SUV.
Adam Jeffery | CNBC
Manufacturer of luxury sports cars Ferrari beat Wall Street’s fourth-quarter revenue and profit expectations, capping a year of record profits.
The automaker reported net income of 1.26 billion euros, or $1.36 billion, for 2023, including 294 million euros, or $317.9 million, in the fourth quarter. Adjusted earnings before interest and taxes (EBIT) for the year were 1.62 billion euros, or $1.75 billion, including 372 million euros, or $402.3 million, in the final quarter. Both were annual records for the company.
Ferrari’s revenue rose 17% last year to 5.97 billion euros, or $6.46 billion, including an 11% rise in the fourth quarter from 1.37 billion euros a year earlier in 2022.
Such records are expected to be short-lived, with Ferrari forecasting to surpass many of these results in 2024. The company’s forecast for this year calls for sales of more than 6.4 billion euros, or $6.9 billion, and adjusted earnings per share of 2.5 billion euros, before at least 7.50 euros, with adjusted EBIT -Margin of at least 38%. Adjusted profit margins are expected to be at or slightly below 2023 levels.
Shares of Ferrari hit a new 52-week high on Thursday, rising about 12% to nearly $390 per share on the New York Stock Exchange. The company’s previous 52-week high was $372.42 on December 11.
Here’s how the company performed in the fourth quarter compared to the average estimates from LSEG, formerly known as Refinitiv:
- Earnings per share: 1.62 euros adjusted compared to 1.50 euros expected
- Revenue: 1.523 billion euros compared to 1.506 billion expected
Ferrari deliveries rose 3% last year to 13,663 vehicles in 2023, including 3,245 units in the fourth quarter.
“We now have a very important year ahead of us with the implementation of our business plan, which continues on its carefully planned path as planned,” Ferrari CEO Benedetto Vigna said in a press release. “The record results for 2023, the ambitions we have for 2024, together with the exceptional visibility of our order book, allow us to look to the high-level targets for 2026 with greater confidence.”
Separately, in other Ferrari news, several media outlets reported that Formula 1 star Lewis Hamilton was about to make a surprise move from Mercedes to the Ferrari racing team for the 2025 season.
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2024-02-01 21:37:06
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