Car key for the Ferrari Purosangue SUV.
Adam Jeffery | CNBC
Luxury sports car manufacturer ferrari beat Wall Street earnings expectations for the fourth quarter to close out a record year of profits.
The automaker reported net profit of 1.26 billion euros, or $1.36 billion, for 2023, including 294 million euros, or $317.9 million, during the fourth quarter. Its adjusted earnings before interest and taxes, or EBIT, were 1.62 billion euros, or $1.75 billion, for the year, including 372 million euros, or $402.3 million, in the latest quarter. Both were annual records for the company.
Ferrari's revenue last year rose 17% to 5.97 billion euros, or $6.46 billion, including an 11% increase in the fourth quarter from 1.37 billion euros a year earlier in 2022.
These records are expected to be short-lived, as Ferrari plans to surpass many of those results in 2024. The company's forecast for this year calls for revenue of more than 6.4 billion euros, or $6.9 billion, and a profit adjusted per share of at least at least 7.50 euros, with an adjusted EBIT margin of at least 38%. Their adjusted profit margins are expected to be in line or slightly below those in 2023.
Ferrari shares hit a new 52-week high on Thursday, gaining about 12% to nearly $390 per share on the New York Stock Exchange. The company's previous 52-week high of $372.42 occurred on December 11.
Here's how the company performed in the fourth quarter, compared to average estimates compiled by LSEG, formerly known as Refinitiv:
- Earnings per share: 1.62 euros adjusted vs 1.50 euros expected
- Revenue: 1,523 million euros compared to the 1,506 million expected
Ferrari shipments rose 3% last year to 13,663 vehicles in 2023, including 3,245 units in the fourth quarter.
“We now have a very important year ahead of us in the execution of our business plan, which continues as planned on its carefully planned path,” Ferrari CEO Benedetto Vigna said in a statement. “The record results in 2023, the ambitions we have for 2024, together with the exceptional visibility of our order book, allow us to look at the high-end targets for 2026 with greater confidence.”
Elsewhere, in other Ferrari news, multiple media outlets have reported that Formula 1 star Lewis Hamilton is about to make a surprise move from Mercedes to the Ferrari racing team for the 2025 season.
