Ferrari (RACE) Q4 2023 earnings

ferrari Fourth-quarter top-line and bottom-line profit estimates beat Wall Street expectations, delivering record profits for the luxury sports car maker.

this automaker reports Net profit in 2023 will be 1.26 billion euros ($1.36 billion), of which net profit in the fourth quarter will be 294 million euros ($317.9 million). Its full-year adjusted earnings before interest and taxes (EBIT) were 1.62 billion euros ($1.75 billion), including 372 million euros ($402.3 million) in the previous quarter. Both were annual records for the company.

Ferrari’s revenue last year grew 17% to 5.97 billion euros ($6.46 billion), with revenue in the fourth quarter rising 11% from 1.37 billion in the same period a year earlier in 2022.

Such records are expected to be short-lived, as Ferrari is expected to break many of them in 2024. The company expects revenue this year of more than 6.4 billion euros ($6.9 billion), adjusted profit per share of at least 7.50 euros and an adjusted EBIT margin of at least 38%. Adjusted margins are expected to be flat or slightly lower than in 2023.

Ferrari shares hit a new 52-week high during Thursday morning trading. Shares rose about 10% to more than $380 a share on the New York Stock Exchange. The company’s previous 52-week high of $372.42 was on December 11.

Here’s how the company performed in the fourth quarter, compared to average forecasts compiled by LSEG (formerly Refinitiv):

• Adjusted earnings per share: 1.62 euros, expected 1.50 euros
• income: 1.523 billion euros, expected to be 1.506 billion euros

Ferrari’s shipments grew 3% last year to 13,663 units in 2023, including 3,245 units sold in the fourth quarter.

Ferrari CEO Benedetto Vigna said in a press release: “We now face a very important year for the execution of our business plan, which continues to be planned and carefully planned. “Record performance in 2023, our ambition for 2024, coupled with excellent visibility on our order book, allow us to view our high-end 2026 targets with increased confidence.”

In other Ferrari news, multiple media outlets reported that Formula One star Lewis Hamilton is set to switch from Mercedes to Ferrari for the 2025 season.