Ferrari Rome
source: Ferrari
Ferrari said on Thursday that its first-quarter profit rose 24% to €297 million ($328.8 million), with deliveries up 10% as huge demand for its latest models drove profitability skyrocketing.
“Our order book already extends to 2025,” CEO Benedetto Vigna said in a press release.
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Ferrari’s revenues and profits far exceeded Wall Street estimates, and the corporate maintained its optimistic forecasts for the complete yr. The stock closed just over 5% on Thursday following the report.
Listed here are the important thing numbers from Ferrari first quarter profit reportcompared to consensus expectations of Wall Street analysts, as reported by Refinitiv:
- Earnings per share: EUR 1.63 against the expected EUR 1.48.
- Income: EUR 1.43 billion against the expected EUR 1.39 billion.
Revenue increased 20% year-on-year to €1.43 billion from €1.19 billion in the primary quarter of 2022.
This was largely due to a richer mixture of models being sold and a rise in “customization”, the corporate’s term for long lists of options that may add a whole lot of 1000’s of dollars to the value of a recent Ferrari. Ferrari is encouraging increasingly of its customers to benefit from the expanded options available as a part of its wider effort to increase profit margins.
These efforts are paying off: Ferrari’s EBIT (earnings before interest and taxes) margin, a widely watched figure, is up a full percentage point to 26.9% from 25.9% a yr ago.
Ferrari delivered 3,567 vehicles within the quarter, up 10% from a yr ago. He said the rise in deliveries was driven by strong demand for the Portofino M convertible, the 296 GTB hybrid sports automobile and the 812 Competizione, a limited edition, even faster version of the twelve-cylinder flagship 812 Superfast.
Ferrari said it began production of its latest seven-figure Icona model, the Daytona SP3, in the primary quarter. It plans to produce just 599 units of the Daytona SP3, with a price starting at just over $2.2 million. All 599 units have already been sold.
Despite an extended waiting list, Vigna said Ferrari has reopened the order books for its upcoming Purosangue, a V12-engined SUV-like model with a starting price of around $400,000. Ferrari has temporarily stopped taking orders for the Purosangue due to unexpectedly high early demand.
Deliveries of the Purosangue will start in Europe before the tip of Q2 and within the US in Q3.
Ferrari revealed one recent model in the primary quarter, a V8 convertible version of its Roma coupe.
Despite a better-than-expected quarter, Ferrari maintained its earlier full-year guidance. It still expects revenue of around €5.7 billion in 2023, with adjusted earnings per share between €6 and €6.20. It also expects its full-year EBIT margin to increase to around 26% with the Daytona SP3 and Purosangue.