Maranello, Italy – Ferrari stock surged today after the luxury carmaker reported strong Q4 sales results, exceeding expectations and projecting further growth in 2024. The company also hinted at signing Formula 1 legend Lewis Hamilton to its racing team, adding to the excitement among fans and investors.
In the fourth quarter, Ferrari’s revenue reached 1.52 billion euros ($1.65 billion), surpassing estimates of 1.50 billion euros. The company also noted an 11% increase in sales compared to the previous year. However, profit fell slightly short of expectations with an adjusted EBITDA of 558 million euros ($606 million), missing estimates by a small margin. Nonetheless, Ferrari’s net profit for the year saw an impressive 34% surge, crossing the 1 billion euro mark for the first time to reach a record 1.257 billion euros ($1.3 billion).
Looking ahead to 2024, Ferrari anticipates revenue to climb to 6.4 billion euros, with adjusted EBITDA hitting 2.45 billion euros ($2.64 billion) as demand for luxury cars remains strong. CEO Benedetto Vigna expressed confidence in the company’s outlook, citing the unprecedented financial results in 2023 and the positive momentum heading into 2024.
Ferrari also revealed its long-term 2026 target, aiming for a product mix of 40% gas-powered cars and 60% hybrid cars, with an EBITDA target of 2.5 billion to 2.7 billion euros ($2.72 billion to $2.93 billion) and an EBITDA margin of 38%-40%.
The company achieved growth in deliveries as well, shipping 13,663 cars in 2023, marking a 3% increase from the previous year. The Americas saw the highest growth in deliveries, up 10.6%, driven by the new Purosangue SUV and the 296 and SF90 hybrid sports cars. Ferrari has plans to launch its first full EV in Q4 of 2025 and is in the process of building a new factory in Maranello for the assembly of hybrid and full-electric vehicles.
Additionally, the company’s conservative guidance for 2024 has impressed analysts, with one noting Ferrari’s stellar earnings track record and maintaining a Buy rating on the stock.
In a surprising development, Scuderia Ferrari announced the signing of seven-time Formula One champion Lewis Hamilton, who will be making a switch from the Mercedes’ F1 team to Ferrari for the 2025 season. This move has garnered significant attention as Hamilton’s contract with Mercedes only extends through 2024, giving him the option to join Ferrari for the following season.
Hamilton’s potential move to Ferrari, coupled with the company’s strong financial performance, has ignited further excitement in the automotive industry, setting the stage for a compelling period in the world of motorsport and luxury car manufacturing.
As Ferrari continues to make strategic moves to solidify its position in the market, the automotive world eagerly anticipates the impact of Hamilton’s potential transition to the iconic Italian racing team.