Ferrari Stock Surges as Earnings Exceed Expectations and Guidance
Ferrari's (RACE) stock soared after the Italian automaker released strong financial results that surpassed estimates and raised guidance.
Exceptional Performance
In Q4 2024, Ferrari's global sales jumped 14% to €1.74 billion ($1.8 billion), exceeding expectations of €1.64 billion ($1.7 billion). Diluted EPS surged to €2.14 ($2.22), outperforming estimates of €1.88 ($1.95). EBITDA increased 15% to €643 million ($666.5 million), surpassing expectations by €20 million ($20.7 million).
Guidance Upgrade
Based on its strong performance, Ferrari raised its guidance for 2025. Net revenues are now expected to exceed €7 billion ($7.2 billion), up from the previous estimate of €6.7 billion ($6.94 billion). Adjusted EBITDA is projected at over €2.68 billion ($2.78 billion), compared to €2.56 billion ($2.65 billion) previously.
Resilience Amid External Factors
Ferrari's clientele is largely unaffected by tariff pressures from the Trump administration due to the high price point of its vehicles. Despite a decline in sales in China, strong performance in the US and Europe propelled overall growth.
Electrification Strategy
Ferrari announced plans to unveil its first EV at its Capital Markets Day on October 9th. CEO Benedetto Vigna emphasized the importance of "quality of revenues over volumes," highlighting the company's focus on a strong product mix and personalization.
Analyst Outlook
Analysts remain bullish on Ferrari. Morgan Stanley analyst Adam Jonas views it as a "defensive business" with strong growth potential and low earnings volatility. Ferrari's wait list extending well into 2026 supports this positive outlook.