Luxury sports car manufacturer Ferrari has exceeded expectations by reporting record-breaking earnings for the fourth quarter, capping off a highly profitable year. The company’s net profit for 2023 reached 1.26 billion euros ($1.36 billion), including 294 million euros ($317.9 million) in the fourth quarter alone. Ferrari’s adjusted earnings before interest and taxes (EBIT) for the year amounted to 1.62 billion euros ($1.75 billion), with 372 million euros ($402.3 million) generated in the last quarter. These figures mark annual records for the company.
Furthermore, Ferrari’s revenue for 2023 increased by 17% to 5.97 billion euros ($6.46 billion), with a notable 11% growth in the fourth quarter compared to the previous year. The company’s impressive performance is expected to continue into 2024, with forecasts predicting revenue of over 6.4 billion euros ($6.9 billion) and an adjusted per share profit of at least 7.50 euros. Ferrari aims to maintain an adjusted EBIT margin of at least 38%, with adjusted profit margins in line or slightly lower than those of 2023.
The positive financial results have also had a significant impact on Ferrari’s stock value, as shares reached a new 52-week high during trading, surging by approximately 10% to over $380 per share on the New York Stock Exchange. This surpasses the previous 52-week high of $372.42 set in December.
Examining the company’s performance in the fourth quarter, it is evident that Ferrari outperformed average estimates compiled by LSEG (formerly known as Refinitiv). The adjusted earnings per share amounted to 1.62 euros, surpassing the expected 1.50 euros, while revenue reached 1.523 billion euros compared to the projected 1.506 billion euros.
In terms of sales, Ferrari experienced a 3% increase in shipments in 2023, delivering a total of 13,663 vehicles, including 3,245 units in the fourth quarter. These figures highlight the company’s strong market presence and demand for its luxury sports cars.
Ferrari’s CEO, Benedetto Vigna, expressed confidence in the company’s future prospects, stating, “We now have a very important year ahead of us in the execution of our business plan, which continues on schedule along its carefully planned path.” Vigna emphasized the exceptional visibility of Ferrari’s order book and the record-breaking results achieved in 2023, which provide a solid foundation for the company to aim for ambitious targets in 2024 and beyond.
In other news related to Ferrari, there have been reports in multiple media outlets suggesting that Formula 1 star Lewis Hamilton may make a surprising move from Mercedes to join the Ferrari racing team for the 2025 season. While this remains speculative, such a move would undoubtedly generate significant excitement and anticipation among motorsport enthusiasts.
As Ferrari celebrates its remarkable financial achievements and sets its sights on even greater success in the coming years, the company’s performance continues to captivate both investors and fans alike. With its iconic brand and commitment to excellence, Ferrari remains at the forefront of the luxury sports car industry, solidifying its position as a symbol of prestige and performance.