Luxury sports car maker Ferrari reassured investors on Thursday that its revenues and core earnings would keep growing this year, supported by a strong order book stretching across 2025.
The upbeat forecasts sent Ferrari's shares roaring ahead by as much as 9.5%, putting the company's market value in sight of a record $100bn (about R1,856,390,000,000) mark.
"The vitality of our business is again confirmed by the order book, which remains strong across all geographies and covers the entire 2025," CEO Benedetto Vigna told analysts on a call.
Ferrari will enter a new era in the final quarter of next year when it plans to launch its first fully electric car.
Presenting its 2023 results, which broadly met its targets, the Italian company guided for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increasing to at least €2.45bn (about R49,019,256,000) this year.
That compares with the €2.28bn (about R46,077,842,400) delivered in 2023.
"Investors were fearing the worst, namely a conservative guide well below consensus estimates," RBC analysts said in a note, adding this had caused the stock's recent sell-off.
By 15.35 GMT Milan-listed Ferrari shares were up 9.2%. They had lost more than 10% between mid-December and late-January.
Away from the boardroom, there were media reports that Ferrari's Formula One racing team had pulled off a coup by hiring seven times world champion Lewis Hamilton to race for them from 2025.
Purosangue in demand
The company said its shipments rose 3% last year to 13,663 vehicles, driven by the ramp-up phase of its four-door, four-seater Purosangue model.
The carmaker generated more than €930m (about R18,795,906,843) cash last year and around €800m (about R16,167,392,000) of that will be distributed to shareholders through dividends and share buybacks, Vigna said.
Bernstein analysts said Ferrari had recently reined in earnings expectations so the guidance for this year "may actually provide relief to some investors, who feared Ferrari would continue to manage down expectations on 2024".
"We believe there is room for guidance to creep up over the year as Ferrari gains more visibility on personalisation rates," they said in a note, referring to the premiums customers pay to make the cars they buy more suited to their tastes.
Personalisations amounted to around 19% of Ferrari's total revenue last year.
Vigna said the "exceptional visibility" in the company's order book would allow it "to look at the high-end of 2026 targets with stronger confidence".
In its long-term business plan Ferrari has projected adjusted EBITDA of €2.5bn to €2.7bn (about R50,518,738,325 to R54,563,880,285 in 2026).
Ferrari shares surge as strong orders underpin growth
Image: Supplied
Luxury sports car maker Ferrari reassured investors on Thursday that its revenues and core earnings would keep growing this year, supported by a strong order book stretching across 2025.
The upbeat forecasts sent Ferrari's shares roaring ahead by as much as 9.5%, putting the company's market value in sight of a record $100bn (about R1,856,390,000,000) mark.
"The vitality of our business is again confirmed by the order book, which remains strong across all geographies and covers the entire 2025," CEO Benedetto Vigna told analysts on a call.
Ferrari will enter a new era in the final quarter of next year when it plans to launch its first fully electric car.
Presenting its 2023 results, which broadly met its targets, the Italian company guided for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increasing to at least €2.45bn (about R49,019,256,000) this year.
That compares with the €2.28bn (about R46,077,842,400) delivered in 2023.
"Investors were fearing the worst, namely a conservative guide well below consensus estimates," RBC analysts said in a note, adding this had caused the stock's recent sell-off.
By 15.35 GMT Milan-listed Ferrari shares were up 9.2%. They had lost more than 10% between mid-December and late-January.
Away from the boardroom, there were media reports that Ferrari's Formula One racing team had pulled off a coup by hiring seven times world champion Lewis Hamilton to race for them from 2025.
Purosangue in demand
The company said its shipments rose 3% last year to 13,663 vehicles, driven by the ramp-up phase of its four-door, four-seater Purosangue model.
The carmaker generated more than €930m (about R18,795,906,843) cash last year and around €800m (about R16,167,392,000) of that will be distributed to shareholders through dividends and share buybacks, Vigna said.
Bernstein analysts said Ferrari had recently reined in earnings expectations so the guidance for this year "may actually provide relief to some investors, who feared Ferrari would continue to manage down expectations on 2024".
"We believe there is room for guidance to creep up over the year as Ferrari gains more visibility on personalisation rates," they said in a note, referring to the premiums customers pay to make the cars they buy more suited to their tastes.
Personalisations amounted to around 19% of Ferrari's total revenue last year.
Vigna said the "exceptional visibility" in the company's order book would allow it "to look at the high-end of 2026 targets with stronger confidence".
In its long-term business plan Ferrari has projected adjusted EBITDA of €2.5bn to €2.7bn (about R50,518,738,325 to R54,563,880,285 in 2026).
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