Shares of Ferrari (RACE 3.07%) were surging today after the luxury carmaker posted a strong fourth-quarter earnings report, with sales up an impressive 14%.
As a result, the stock had gained 7.7% as of noon ET.
Image source: Ferrari.
Ferrari impresses the market
Ferrari, which makes a limited number of cars in order to keep prices high and maintain its luxury status, said that revenue in the quarter jumped 14% to 1.74 billion euros, as the number of cars it sold rose 2% to 3,325, showing the average vehicle it sold cost more than US$500,000. That topped estimates at 1.66 billion euros.
Management noted that a strong product mix and demand for personalization drove results, as its average selling price was up significantly. Operating profits jumped 26% to 469 million euros, and earnings per share rose 32% to 2.14 euros, which also beat the consensus at 2.02 euros.
CEO Benedetto Vigna called the results for the year "outstanding," adding, "On these solid foundations, we expect further robust growth in 2025 that will allow us to reach one year in advance the high end of most of our profitability target for 2026."
NYSE: RACE
Key Data Points
What's next for Ferrari?
Ferrari was able to overcome continued weakness, which has weighed on the broader luxury sector, as shipments to China fell 21% in the quarter to 286, in line with a similar decline for the full year.
Ferrari continues to benefit from a differentiated position in the auto industry, and its exclusivity strategy is paying off. The company also said it would introduce an electric car later this year.
Looking ahead to 2025, the company expects revenue of at least 7 billion euros, reflecting growth of at least 5%, and adjusted earnings per share of at least 8.60 euros, equal to at least 2% growth. Analysts are calling for 7.15 billion euros in revenue and adjusted EPS of 9 euros, which the company could very well beat, as its initial guidance for the year is likely conservative.
Ferrari has beaten the market by a wide margin in recent years, and after the latest quarter, it looks like a good bet to continue to do so.
