Ferrari earnings miss consensus and stock fall in Milan

Ferrari NV announced strong third-quarter results on Tuesday, reporting significant growth in earnings. Net profit for the third quarter increased by 13% year-over-year, reaching €375 million, up from €332 million. Revenue rose by 6.5% to €1.64 billion, compared to €1.54 billion in the same period last year.

Ferrari earnings miss consensus and stock fall in Milan

Adjusted earnings per share climbed 14% to €2.08 from €1.82, though this figure fell short of analysts' expectations, which had anticipated €2.18 per share. As a result, Ferrari's shares dipped 4.3%, trading at €419.10 each in Milan on Tuesday afternoon. The luxury sports car manufacturer reported a 2.2% decline in shipments, totaling 3,383 units, down from 3,459 units a year prior. While shipments increased in the Europe, Middle East, and Africa region, they fell in the Americas and the Mainland China, Hong Kong, and Taiwan markets. However, the "rest of Asia Pacific" segment saw an uptick in shipments, according to the Maranello, Italy-based firm. "The third quarter once again demonstrates Ferrari's growing results, driven by a strong product mix and increased customization options," said Chief Executive Officer Benedetto Vigna.

Revenue details

The majority of Ferrari's revenue comes from cars and spare parts, which saw a 5.3% increase in sales during the third quarter, amounting to €1.40 billion. Additionally, sponsorship, commercial, and brand revenue surged by 20% to €174 million, despite the challenges posed by weaker Formula 1 performance last year. In 2023, Ferrari secured only one race win, but it has already achieved five victories in the 2024 season. With a record 24 grands prix scheduled for the 2024 Formula 1 calendar, Ferrari expressed "even greater confidence" in its future guidance, projecting net revenue to exceed €6.55 billion, a significant increase from €5.97 billion in 2023.