Ferrari (RACE) stock rose today after the Italian luxury automaker reported better-than-expected fourth-quarter sales results and said it expects the momentum to continue in 2024. There is. The Maranello-based carmaker is also rumored to have signed seven-time F1 champion Lewis Hamilton. That racing team is giving Ferrari fans (and some investors) even more reason to root for them.
For the quarter, Ferrari reported revenue of 1.52 billion euros ($1.65 billion), beating estimates compiled by Bloomberg of 1.5 billion euros ($1.63 billion). Ferrari announced that sales increased by 11% compared to the previous year. In terms of profitability, Ferrari reported adjusted EBITDA of 558 million euros ($606 million), slightly below expectations of 560 million euros ($608.2 million). Ferrari's annual net profit rose by 34% to exceed 1 billion euros for the first time, reaching a record 1.257 billion euros ($1.3 billion).
Exciting investors is Ferrari's outlook for 2024, with the automaker expecting strong demand for luxury goods, with sales of 6.4 billion euros and adjusted EBITDA of 2.45 billion euros (26 It is expected to reach $40 million.
“2023 was a very successful year in which we strengthened the brand through a number of achievements reflected in unprecedented financial results,” Ferrari CEO Benedetto Vigna said in a statement. “With our record performance in 2023, the ambitions we have for 2024 and the exceptional visibility in our order book, we can look to our 2026 cap targets with even greater confidence. can.”
Ferrari's long-term goals for 2026 include a product mix of 40% gasoline and 60% hybrid vehicles, with an EBITDA target of 2.5 billion to 2.7 billion euros ($2.72 billion to $2.93 billion). , the EBITDA margin is between 38% and 40%.
In terms of deliveries, Ferrari shipped 13,663 cars in 2023, an increase of 3% year-on-year. In particular, deliveries to the Americas drove his 10.6% growth. Ferrari said its new SUV Purosangue and hybrid sports cars 296 and SF90 drove profits. Ferrari plans to launch its first fully electric car in the fourth quarter of 2025 and is building a new factory in Maranello to assemble hybrid and fully electric cars.
“We note our long history of providing conservative guidance, and our 2024 assumptions include a healthy dose of conservatism,” CFRA analyst Garrett Nelson said in a note to investors. It seems like there is.” Nelson reiterated his “buy” rating on Ferrari, raising his price target by $25 to $385, citing Ferrari's “excellent earnings performance (exceeding final profit for 14 consecutive years).”
Ferrari F1 team on the verge of surprise contract
One of the pieces of news that confirms Ferrari's strong quarterly and year-end results is the confirmation of a major driver line-up change for F1 team Scuderia Ferrari.
Thursday afternoon, Scuderia Ferrari Seven-time champion Lewis Hamilton confirmed will move from the Mercedes F1 team, where he has driven since 2013, to Scuderia Ferrari in 2025.
Hamilton is reportedly under contract with Mercedes until 2024, but only has an option for 2025, at which point he could move to Ferrari.
In addition to his seven world championships, Hamilton is the winningest driver in F1 history and will join the oldest team in the F1 paddock. Scuderia Ferrari has been in operation since 1929 and has won the constructors' world championship 16 times, but hasn't won a title since 2008.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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