Headline: Ferrari Stock Soars on Stellar Q4 Results and Upbeat Guidance

SEO Keywords: Ferrari stock, RACE, luxury automaker, Q4 results, financial performance, EBITDA, net revenues, profitability targets, margins, Chinese market, tariffs, Purosangue SUV, Roma Spider, 296 GTS, SF90 XX, 12Cilindri, F80

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Ferrari's (RACE) stock surged in early trading after the Italian luxury automaker delivered impressive financial results for the fourth quarter of 2024, surpassing analyst expectations and issuing bullish guidance for 2025.

Total global sales soared by 14%, reaching 1.74 billion euros ($1.8 billion), outperforming Bloomberg's estimates of 1.64 billion euros. Diluted earnings per share (EPS) also exceeded consensus, hitting 2.14 euros ($2.22) compared to expectations of 1.88 euros ($1.95). Notably, EBITDA (earnings before interest, taxes, depreciation and amortization) jumped by 15% to 643 million euros ($666.5 million), exceeding estimates by 20 million euros ($20.7 million).

"We attribute our outstanding financial performance to the strong product mix and growing demand for personalizations," said Ferrari CEO Benedetto Vigna in the earnings release. "We expect continued robust growth in 2025, enabling us to reach the high-end of our profitability targets for 2026 one year ahead of schedule."

Ferrari raised its guidance for 2025, projecting net revenues to exceed 7 billion euros ($7.2 billion), up from the previous estimate of 6.7 billion euros ($6.94 billion). Adjusted EBITDA is now forecast to surpass 2.68 billion euros ($2.78 billion), compared to the earlier estimate of 2.56 billion euros ($2.65 billion).

These figures would yield an EBITDA margin of 38.3% for Ferrari, a remarkable figure in an industry where margins generally fall in the mid to high single digits. In contrast, GM's (GM) EBIT-adjusted margin stood at only 5.3% in the fourth quarter.

Ferrari's strong performance in the US and Europe counterbalanced weakness in China, where unit sales declined by 33.3% year-over-year. North America accounts for 25% of Ferrari's sales, while China contributes only 8%.

Despite the potential headwind from tariffs on goods imported from the EU, Ferrari's high-end clientele and long waiting list (extending into 2026) suggest that wealthy buyers are unlikely to be deterred by price increases.

Driven by models such as the Purosangue SUV, Roma Spider, and 296 GTS, Ferrari's sales flourished in the quarter. Shipments of the SF90 XX and 12Cilindri also commenced in the second half of the year. Notably, the F80 hypercar, with all 799 units sold out despite its hefty price tag of 3.6 million euros ($3.9 million), made its debut in Q4.

Ferrari remains confident in its future prospects, as evidenced by its robust earnings performance and optimistic guidance for 2025.