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Ferrari Roma
Source: Ferrari
Ferrari It said on Thursday its first-quarter profit jumped 24% to 297 million euros ($328.8 million), a 10% increase in shipments as massive demand for its latest models boosted profitability.
“Our order history already extends to 2025,” CEO Benedetto Vigna said in a statement.
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Ferrari’s revenue and earnings strongly beat Wall Street estimates, and the company maintained its optimistic guidance for the full year. Shares rose more than 5% in early trade following the news.
Here are the key numbers from the Ferrari cars First quarter earnings reportcompared to the consensus forecast of Wall Street analysts as reported by Refinitiv:
- Earnings per share: 1.63 euros versus the expected 1.48 euros.
- he won: 1.43 billion euros, compared to the expected 1.39 billion euros.
Revenue increased by 20% year-on-year, to €1.43 billion from €1.19 billion in the first quarter of 2022.
This is due in large part to a richer mix of models sold and an increase in “customization,” the company’s term for long option lists that can add hundreds of thousands of dollars to the price of a new Ferrari. Ferrari is encouraging more of its customers to take advantage of the expanded options available as part of a broader effort to boost its profit margins.
Those efforts are paying off: Ferrari’s profit margin (earnings before interest and tax), a widely watched figure, rose a full percentage point to 26.9% from 25.9% a year ago.
Ferrari shipped 3,567 cars in the quarter, up 10% from a year ago. It said the increase in shipments was driven by higher demand for the Portofino M convertible, the 296 GTB hybrid sports car, and the 812 Competizione, a faster limited-running version of its flagship twelve-cylinder vehicle, the 812 Superfast.
Ferrari said it began ramping up production of its latest seven-figure Icona model, the Daytona SP3, in the first quarter. It plans to manufacture just 599 units of the Daytona SP3, which starts at $2.2 million. All 599 units are already sold out.
Despite the long waiting list, Vigna said Ferrari has reopened the order books for the upcoming Purosangue, a V12-powered SUV-like model with a starting price of around $400,000. Ferrari has temporarily stopped taking orders for Purosangue due to unexpectedly high early demand.
Purosangue deliveries will begin in Europe before the end of the second quarter, and in the US in the third quarter.
Ferrari revealed a new model during the first quarter, which is a convertible version of its V8-powered Roma coupe.
Despite a better-than-expected quarter, Ferrari maintained its previous guidance for the full year. It still expects revenue of around €5.7 billion in 2023, with adjusted earnings per share between €6 and €6.20. It also expects to increase its full-year EBIT margin, to approximately 26%, supported by Daytona SP3 and Purosangue.
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