Ferrari stock surges on Q4 earnings beat, record net profit
Luxury sports car maker Ferrari (RACE) saw its shares race higher after beating fourth-quarter earnings expectations. The iconic Italian automaker generated over €1 billion in net profit, representing an 11% revenue increase year-over-year.
Yahoo Finance Automotive Reporter Pras Subramanian breaks down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
- Ferrari shares, they are charging higher after the automaker reported Q4 sales that topped expectations and seized momentum continuing in 2024. Let's bring in our very own price meridian to go through the details. Pras.
PRAS SUBRAMANIAN: Yeah, Josh, kind of a strong quarter here for a good outlook. We mentioned-- you mentioned that revenue topping estimates up 11% year over year. Their deliveries only up 3% though. So they're really making some hay there with pricing.
For the year, they also topped 1 euro billion in net profit, a record amount for the company. So, again, Ferrari showing that luxury demand is still there. And then you mentioned talking about continuing momentum in 2024. They're seeing that their revenue is going to hit 6.4 euros billion next year, and another record potentially on 2.5-- 2.45 billion in adjusted EBITDA.
So good strong expectations. They said that the Purosangue SUV, the 2.96 hybrid sports car powered sales for them this year.
JULIE HYMAN: And I can't remember where I saw the comment, but I saw the comment somewhere that you can't think of Ferrari just as a car company. It's more of a lifestyle company.
PRAS SUBRAMANIAN: Oh, yeah, definitely. I mean, definitely. And I also saw a stat that something along the lines of 25% of new buyers are below the age of 40, which shocked me.
JULIE HYMAN: Considering the price of those cars.
PRAS SUBRAMANIAN: Well, usually, the people driving them are silver-haired sort of individuals.
JULIE HYMAN: But I guess that's true too.
PRAS SUBRAMANIAN: I should talk, right? Anyway.
JULIE HYMAN: Let's talk about the other big headline though with Ferrari today, one that caused a little bit of a buzz among certain segments of our newsroom. Lewis Hamilton, the Formula One star, leaving, where was he for a long time, Mercedes to go to Ferrari.
PRAS SUBRAMANIAN: I mean, that must be quite a coup. It's a huge shocker in the world of F1. It just confirmed about an hour ago. Ferrari announced it that Hamilton been at Mercedes for since 2013, a seven-time world champion switching over to Ferrari, the most storied brand or storied team in F1 history. A huge sort of it's going to be a huge big deal next year.
Liberty Media is going to be very happy to have this sort of buzz around that. The race will be kind of I think even more anticipated to see how Hamilton will do on this new team. He also has a very talented partner in Charles Leclerc.
So that'll be a good kind of tandem there, but, yeah, a huge coup for Ferrari to get him for the next a multi-year contract. So that's going to be a massive, massive win for Ferrari. And for Mercedes, unfortunately, not that great.
JULIE HYMAN: Interesting. All right, Pras, thank you, appreciate it.
