Shares of Italian luxury sports car manufacturer Ferrari NV (IT:RACE) hit a new 52-week high of €354.60 yesterday after reporting blockbuster results for the fourth quarter and full year of Fiscal 2023. Ferrari’s Q4 revenue rose 11% year-over-year to €1.52 billion, exceeding analysts’ consensus of €1.51 billion. Also, adjusted earnings per share of €1.62 increased 34% and came in higher than the consensus of €1.50.
Ferrari’s Impressive Results
For the full year, Ferrari’s revenue grew 17.2% to €5.97 billion, while net profits jumped 34% to €1.26 billion. Adjusted earnings per share stood at €6.90 in FY23, up 36% annually.
Notably, Ferrari delivered 13,663 autos in 2023, reflecting a 3.3% increase over 2022. However, Ferrari’s Q4 shipments fell 2.5% year-over-year to 3,245 autos.
Looking ahead, Ferrari expects the demand for luxury cars to remain strong. Based on this, the company is forecasting revenue of more than €6.4 billion for Fiscal 2024, while adjusted EPS is expected to be over €7.50 per share.
Also, for 2026, Ferrari forecasts meeting the high-end of its EBITDA (earnings before interest tax depreciation and amortization) target of €2.5 billion to €2.7 billion. The car maker’s 2026 target includes selling 40% internal combustion engine (ICE) autos and 60% hybrid cars. To achieve this, Ferrari is building a new factory in Maranello for assembling hybrid and fully electric autos
In a surprise turn of events, ace Formula 1 champion Lewis Hamilton will shift to Ferrari for the 2025 racing season after 12 years of association with Mercedes.
Is Ferrari a Good Stock to Buy?
Following Ferrari’s Q4 print, three analysts reiterated a Buy rating on RACE shares, while two analysts reaffirmed a Hold rating. Jefferies analyst Philippe Houchois reiterated a Hold rating on RACE stock with a price target of €285 (19.2% downside).
Overall, with seven Buys and eight Holds, RACE stock has a Moderate Buy consensus rating on TipRanks. The Ferrari NV share price forecast of €350.63 implies that shares are almost fully valued at current levels.
