Ferrari stock surges on upbeat 2024 profit forecast, as luxury demand remains strong

Ferrari Exceeds Expectations with Strong Q4 Sales Results

Italian luxury car manufacturer Ferrari has achieved outstanding sales results in the fourth quarter of 2023, leading to a surge in share prices. The company reported revenue of 1.52 billion euros ($1.65 billion), marking an impressive 11% increase compared to the same period last year.

Notably, Ferrari’s adjusted EBITDA for the quarter reached an impressive 558 million euros ($606 million). The automaker’s net profit also soared by 34%, surpassing 1 billion euros ($1.3 billion) for the first time in its history, reflecting strong financial performance and market demand.

Looking ahead, Ferrari has set ambitious goals for the coming years. The company’s guidance for 2024 predicts a revenue of 6.4 billion euros and adjusted EBITDA of 2.45 billion euros ($2.64 billion). These projections illustrate the brand’s confidence in its ability to maintain its growth trajectory amidst a rapidly evolving automotive industry.

Ferrari is also making strategic moves to adapt to changing market trends. The automaker plans to achieve a product mix of 40% gas-powered cars and 60% hybrid cars by 2026, reflecting its commitment to sustainability and eco-friendly initiatives. The company has already witnessed positive growth in deliveries, with a 3% increase in 2023 driven by the successful launch of the new Purosangue SUV and hybrid sports cars.

Furthermore, Ferrari has some exciting plans on the horizon. The company is set to launch its first full electric vehicle (EV) in the fourth quarter of 2025, demonstrating its commitment to embracing the future of sustainable transportation. In preparation for this milestone, Ferrari is constructing a new factory in Maranello dedicated to hybrid and electric vehicle assembly.

In other news, there have been rumors circulating the racing world that seven-time Formula 1 champion, Lewis Hamilton, may join Ferrari’s racing team in 2025. Hamilton, who currently drives for Mercedes, reportedly has an option to switch to Ferrari, further fueling speculation about this potential team-up.

Ferrari’s remarkable Q4 sales results, combined with its strategic plans for the future, have cemented its position as a powerhouse in the luxury automotive industry. With financial strength and a commitment to sustainability and innovation, the company is well-positioned to excel in the years to come.