Ferrari (RACE) shares are surging today after the Italian luxury car manufacturer announced Q4 sales results that exceeded expectations and anticipated ongoing momentum in 2024. The Maranello-based automaker is also rumored to have signed Formula 1 seven-time champion Lewis Hamilton to its racing team, adding more reasons for Ferrari fans (and some investors) to celebrate.During the quarter, Ferrari reported revenue of 1.52 billion euros ($1.65 billion), surpassing estimates of 1.50 billion euros ($1.63 billion), as compiled by Bloomberg. Ferrari stated that its sales increased by 11% from a year ago. On the profitability front, Ferrari reported adjusted EBITDA of 558 million euros ($606 million), slightly missing estimates of 560 million euros ($608.2 million). For the year, Ferrari’s net profit surged by 34%, reaching over 1 billion euros for the first time, at a record 1.257 billion euros ($1.3 billion).
Ferrari Purosangue SUV at the “Gamechangers” display at the Vessel in New York City, Oct. 17, 2023. (Pras Subramanian/Yahoo Finance) (Pras Subramanian)What excites investors is Ferrari’s projected growth for 2024, with the automaker expecting revenue to climb to 6.4 billion euros and adjusted EBITDA of 2.45 billion euros ($2.64 billion), as the automaker anticipates continued strong demand for luxury vehicles.“2023 was a very successful year, during which we strengthened our brand through a number of achievements reflected in our unprecedented financial results,” Ferrari CEO Benedetto Vigna said in a statement. “The record 2023 results, the ambitions that we have on 2024, together with the exceptional visibility on our order book allow us to look at the high end of 2026 targets with stronger confidence.”Ferrari’s long-term 2026 target involves a product mix of 40% gas-powered cars and 60% hybrid cars, and an EBITDA target of 2.5 billion to 2.7 billion euros ($2.72 billion to $2.93 billion) with an EBITDA margin of 38%-40%.In terms of deliveries, Ferrari shipped 13,663 cars in 2023, representing a 3% increase from the previous year, with deliveries to the Americas driving growth, up by 10.6%. Ferrari attributed these gains to its new Purosangue SUV and its 296 and SF90 hybrid sports cars. Ferrari is planning to debut its first full EV in Q4 of 2025 and is constructing a new factory in Maranello to assemble hybrid and fully electric vehicles.Story continues”We note the company’s long history of providing conservative guidance, and there appears to be a healthy dose of conservatism in its assumptions for 2024,” CFRA analyst Garrett Nelson said in a note to investors. Nelson reiterated his Buy rating on Ferrari and raised his price target by $25 to $385, citing Ferrari’s “stellar earnings track record (14 straight bottom-line beats).”Ferrari Formula 1 team on verge of shock signing
Mercedes driver Lewis Hamilton of Britain arrives at the Bahrain International Circuit in Sakhir, Bahrain, Thursday, March 2, 2023. Seven-time Formula One champion Lewis Hamilton has been linked with a shock move from Mercedes to Ferrari next year. (Frank Augstein/AP Photo, File) (ASSOCIATED PRESS)One piece of news overshadowing Ferrari’s strong quarterly and year-end results is confirmation of a significant driver lineup change for its Formula 1 team, Scuderia Ferrari.On Thursday afternoon, Scuderia Ferrari confirmed that seven-time champion Lewis Hamilton is making a move from the Mercedes’ F1 team, where he has been driving since 2013, to Scuderia Ferrari for 2025.Hamilton reportedly has a contract through 2024 with Mercedes, but only has an option for 2025, allowing him to join Ferrari at that time.In addition to his seven world championships, Hamilton holds the record for the most wins of any driver in F1 history and would be joining the most storied team in the F1 paddock. Scuderia Ferrari, in operation since 1929, has secured 16 constructors’ world championships, but hasn’t claimed the title since 2008.Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click hereRead the latest financial and business news from Yahoo Finance
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