Ferrari has recently announced that it is raising its guidance, thanks to an increase in demand for its expensive and customized sports cars. The Italian automaker has seen a surge in demand from customers who are willing to pay top dollar for a personalized driving experience. This trend has allowed Ferrari to increase its revenue and profitability, leading to the decision to raise its guidance. The company's dedication to providing a superior driving experience through its high-end vehicles has clearly paid off, and it seems that customers are willing to invest in the brand's reputation for quality and luxury. Overall, Ferrari's success in the market is a testament to its commitment to excellence and innovation in the automotive industry.
Ferrari, the renowned luxury automaker, announced impressive financial results for the third quarter of this year. The company reported a 46% increase in profit compared to the same period last year, driven by the continued preference of its affluent clientele for personalized options in their new cars.
Revised Guidance for Full Year 2023
Following these strong results, Ferrari has once again revised its guidance for the full year. The company now expects to achieve revenue of approximately 5.9 billion euros ($6.3 billion) in 2023, with a per-share profit of at least 6.55 euros. Additionally, Ferrari aims to maintain an adjusted EBIT margin of at least 26.5%. This revised outlook surpasses the company's previous guidance, which projected revenue of about 5.8 billion euros and a per-share profit between 6.25 euros and 6.40 euros, with an adjusted EBIT margin of at least 26%.
CEO Benedetto Vigna's Remarks on Performance
CEO Benedetto Vigna expressed his satisfaction with the company's performance, attributing the positive results to a richer product mix and the enduring appeal of personalization options. Ferrari's higher-end models have seen increased sales, contributing to the improved outlook. Vigna also noted that the order book remains at its highest levels, indicating strong demand across all regions and covering the entirety of 2025.
Expansion of Personalization Options
In recent years, Ferrari has significantly expanded its range of options, offering customers an extensive selection of paint finishes, interior materials, and other details. These personalized choices, known as "personalizations," have proven immensely popular among Ferrari's discerning clientele. Notably, these additional options can significantly increase the price of a new Ferrari, thereby boosting the company's profit per car sold.
Key Numbers from Q3 Earnings Report
Let's delve into the key numbers from Ferrari's third-quarter earnings report. The company reported earnings per share of 1.82 euros, surpassing Wall Street analysts' expectations of 1.60 euros, as polled by LSEG (formerly known as Refinitiv). Furthermore, revenue for the quarter amounted to 1.54 billion euros, exceeding the anticipated 1.47 billion euros, according to LSEG.
Ferrari's net profit for the third quarter reached 332 million euros, or 1.82 euros per share, representing a remarkable 46% increase compared to the same period in 2022 when it stood at 228 million euros, or 1.23 euros per share. The company's EBIT margin also witnessed significant growth, rising to 27.4% in the third quarter of 2023 from 23.9% in the corresponding period last year.
Moreover, Ferrari reported a notable year-over-year revenue increase of 24%, reaching 1.54 billion euros for the quarter.
Vehicle Shipments
In terms of vehicle shipments, Ferrari delivered a total of 3,459 vehicles in the third quarter, marking a 9% increase compared to the same period in the previous year. The company clarified that this rise was primarily due to its strategic geographic and product allocation plans for each quarter. Importantly, Ferrari emphasized that its order book remains robust, underscoring sustained demand for its vehicles.
Geographical Deliveries
Geographically, deliveries experienced an upswing in Europe and North and South America when compared to the previous year. However, there was a slight decline in China and relatively stable figures in the rest of the Asia-Pacific region.
Production Progress
Ferrari also provided updates on its production progress during the quarter. The company continued to ramp up production of its SUV-like Purosangue model as planned. Additionally, allocations of its limited-run seven-figure Daytona SP3 sports car proceeded according to schedule.
Success of Hybrid Models
Furthermore, Ferrari highlighted the success of its hybrid models in driving shipments. The coupe and convertible versions of the six-cylinder 296 and eight-cylinder SF90 sports cars accounted for an impressive 51% of the company's total shipments during the period.
Summary
Ferrari's outstanding financial performance in the third quarter demonstrates its ability to capitalize on customer preferences for personalized options and higher-end models. With a strong order book and a positive outlook for the full year, the luxury automaker is poised for continued success in meeting the demands of its discerning clientele worldwide.
(This article is sourced from CNBC and curated by Thetransporteronline24)
