Ferrari Stock Races 6% In Premarket As Company Projects 2024 Earnings Growth

In a recent announcement, luxury sports car manufacturer Ferrari NV (NYSE:RACE) has projected a rise in its revenue and core earnings for 2024. This projection is based on a robust order book and the company’s successful performance in 2023.

What Happened: in its Q4 results presentation on Thursday, Ferrari revealed that it anticipates its adjusted EBITDA to reach at least 2.45 billion euros ($2.64 billion) in 2024. Reuters reported that this is a significant increase from the 2.28 billion euros achieved in 2023.

The company’s Milan-listed shares initially experienced a decline but then surged by 4.1% following the announcement. Ferrari’s CEO, Benedetto Vigna, attributed this positive outlook to the “exceptional visibility” provided by the company’s order book, which has bolstered confidence in achieving the high-end of the 2026 targets.

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Ferrari’s long-term business plan includes an adjusted EBITDA forecast of 2.5-2.7 billion euros ($2.70-$2.92 billion) for 2026.

At the time of writing this article, Ferrari was trading at around $369.96 and $370 in premarket, according to Benzinga Pro.

In its Formula One front, Scuderia Ferrari is making headlines as speculations about seven-time world champion Lewis Hamilton donning the red suit in 2025 go viral. However, neither Ferrari nor Hamilton’s current team, Mercedes AMG Petronas F1 Team, has given official statements.

Why It Matters: This projection comes after a series of events that have impacted Ferrari’s performance and outlook. Earlier in January, BofA Securities analyst John Murphy named Ferrari as one of the top picks for 2024, citing its significant intangible brand value and true luxury status, as reported by Benzinga. This recognition by a leading analyst likely contributed to the positive investor sentiment and the subsequent surge in Ferrari’s shares.

Additionally, the company’s Q4 results and the subsequent projection for 2024 have been eagerly awaited. In a preview of Ferrari’s earnings, analysts estimated an earnings per share (EPS) of $1.62 and hoped for positive guidance or forecasted growth for the next quarter. Ferrari’s latest announcement aligns with these expectations and surpasses them, further boosting investor confidence in the company’s future performance.

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