Amidst market uncertainty, Ferrari reported earnings and had no trouble reaffirming its FY guidance. Since the launch of the Purosangue, Ferrari has unlocked an extremely profitable business model that is set to fuel its double-digit growth while keeping volumes flat. In this earnings review, I go over the latest financials and explain what is making Ferrari so successful, with long-term potential.
Ferrari (RACE) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Ferrari (RACE) came out with quarterly earnings of $2.42 per share, beating the Zacks Consensus Estimate of $2.36 per share. This compares to earnings of $2.12 per share a year ago.
Ferrari on Tuesday said tariffs imposed by the U.S. pose a potential risk to the luxury car maker's profitability, becoming the latest company to warn about a hit to earnings or cut financial forecasts as many cite market uncertainty aggravated by President Donald Trump's levies.
More car deliveries and customization requests from customers helped the company deliver forecasting-beating earnings in the first quarter of the year.
The Prancing Horse beat the Street's profit and sales targets—but it looks like investors wanted perfection.
Luxury carmaker Ferrari on Tuesday reported a significant upswing in first-quarter profit, citing robust demand for personalized vehicles. The Maranello, Italy-based sports car manufacturer posted net profit of 412 million euros ($466.3 million) for the first three months of the year, reflecting a 17% increase from the same period last year.
Ferrari's strong revenue growth, averaging 18.3% annually over five years, is driven by its luxury brand positioning, scarcity, and rich heritage. Ferrari's legacy in motorsports and strict brand image rules create a unique competitive moat, sustaining high demand and pricing power. Despite minimal shipment growth, Ferrari's ASP has increased by 6.8% annually, reflecting its strategy to maintain scarcity and drive demand.
We initiate on Ferrari (NASDAQ: RACE) with a Strong Buy rating and $537.29 PT on strong brand heritage and unmatched pricing power. Ferrari's premium multiples are supported by a combination of brand assets, innovation, and history of above-market return; 31x FY25E EV/EBITDA multiple reflects a disciplined optimism. We estimate 16% and 11% EBITDA growth in FY25E and FY26E, respectively, supported by a frontloaded model cadence, strong order visibility, and margin accretion from Purosangue and personalisation.
Ferrari (RACE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Ferrari (RACE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.