Ferrari is set to release its fourth-quarter results on Thursday, and analysts are eagerly awaiting the numbers. Here’s a rundown of what you need to know.
Sales Forecast
According to a FactSet poll of 10 analysts, Ferrari is expected to report €1.63 billion ($1.77 billion) in revenue for the quarter. This would be an increase from the €1.37 billion earned in the fourth quarter of 2022.
EBIT Forecast
Based on estimates from eight analysts, FactSet projects earnings before interest and taxes (EBIT) to reach €384 million. For comparison, EBIT in the fourth quarter of 2022 was €298 million.
Current Market Performance
As of 0947 GMT on Wednesday, Ferrari shares have seen a 15.8% increase since the beginning of the fourth quarter.
Key Watchpoints
Analysts anticipate conservative guidance from Ferrari for 2024, with earnings per share (EPS) projected to fall within the range of €7.00 to €7.15 for the full year. According to Bernstein, this would be 8% below consensus and 5.5% below their own estimates. While this might provide an opportunity for beating expectations, Stifel analysts note that there might not be many surprises due to consensus aligning with 2026 targets.
Additionally, Stifel analysts point out that Ferrari’s recent entry into the SUV market and its plans to introduce fully electric vehicles by 2025 or 2026 bring some uncertainty for a company traditionally known for its gas-burning sports cars. However, they highlight the potential for continued growth in residual values, a significant selling point for Ferrari owners.
For more information, please contact David Sachs at the Wall Street Journal.
