Ferrari, the renowned luxury sports car manufacturer, has exceeded Wall Street’s expectations for both its top and bottom lines in the fourth quarter, capping off a remarkable year of profits.
In 2023, the automaker recorded a net profit of 1.26 billion euros (approximately $1.36 billion), which included 294 million euros (about $317.9 million) during the final quarter.
Furthermore, the company achieved an adjusted earnings before interest and taxes (EBIT) of 1.62 billion euros (roughly $1.75 billion) for the entire year, including 372 million euros (approximately $402.3 million) in the last quarter. These figures represent annual records for Ferrari.
Ferrari’s total revenue for the year experienced a notable 17% surge, reaching 5.97 billion euros (approximately $6.46 billion), with a remarkable 11% increase in the fourth quarter compared to the same period in the previous year, amounting to 1.37 billion euros in 2022.
The company’s strong performance in 2023 is expected to be just the beginning, as Ferrari is projecting even better results in 2024.
Their forecast for this year anticipates revenue exceeding 6.4 billion euros (approximately $6.9 billion) and an adjusted per-share profit of at least 7.50 euros.
They also aim to maintain an adjusted EBIT margin of at least 38%, with adjusted profit margins expected to be in line with or slightly lower than those of 2023.
Ferrari’s shares reached a new 52-week high, rising approximately 12% to nearly $390 per share on the New York Stock Exchange, surpassing their previous high of $372.42, achieved on December 11.
In the fourth quarter, Ferrari’s performance exceeded average estimates from LSEG (formerly known as Refinitiv) in key areas:
- Earnings per share: 1.62 euros (adjusted) vs. 1.50 euros (expected)
- Revenue: 1.523 billion euros vs. 1.506 billion euros (expected)
Ferrari delivered 13,663 vehicles in 2023, marking a 3% increase from the previous year, with 3,245 units shipped during the fourth quarter.
Ferrari’s CEO, Benedetto Vigna, expressed confidence in the company’s future, stating, “The record 2023 results, the ambitions that we have for 2024, together with the exceptional visibility on our order book, allow us to look at the high-end of 2026 targets with stronger confidence.”
In unrelated Ferrari news, there are reports circulating that Formula 1 superstar Lewis Hamilton is contemplating a surprising move from Mercedes to the Ferrari racing team for the 2025 season.