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March 4, 2024

Ferrari Stock Soars on Strong 2023 Results and Lewis Hamilton Signing

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Feb 2, 2024

Ferrari shares jumped over 10% on Wednesday after the Italian luxury sports car maker reported better-than-expected 2023 earnings results and signed Formula One legend Lewis Hamilton to drive for the team starting in 2025. The company’s profits raced past the €1 billion mark for the first time as demand for Ferrari’s exclusive supercars remains robust.

Ferrari Delivers Record Financial Performance in 2023

Helped by exceptional sales growth across all major regions and models, Ferrari blew past earnings expectations in the fourth quarter and full year 2023. The iconic carmaker delivered €1.52 billion in Q4 revenues, up 11% year-over-year, leading to €5.09 billion in annual revenues, up 19.3% from 2022. [1]

Ferrari shipped 13,221 vehicles in 2023, up 20% from the prior year. This growth was driven by the Ferrari Roma and the Purosangue SUV model launched in late 2022. [2]

Key Financial Metrics 2023 Results 2022 Results Year-Over-Year Change
Revenues €5.09 billion €4.27 billion +19.3%
Vehicles Shipped 13,221 11,155 +20%
EBITDA €1.773 billion €1.457 billion +21.7%
Net Profit €1.006 billion €833 million +21%

Table data compiled from multiple Ferrari earnings releases

Boosted by the robust sales growth and operating leverage, Ferrari’s full-year adjusted EBITDA increased 21.7% to €1.773 billion. Meanwhile, net profit crossed into ten-digit territory for the first time, rising 21% from 2022 to €1.006 billion. [3]

Ferrari also announced a 2023 dividend of €2.70 per share, nearly 30% higher than 2022’s dividend and reflecting the company’s record free cash flow generation and earnings growth. [4]

Upbeat 2024 Guidance Points to Further Growth

Buoyed by exceptional demand for new sports cars like the Purosangue SUV and Daytona SP3 hypercar, Ferrari raised its guidance for 2024. The iconic car brand sees revenues rising to approximately €5.7 billion with adjusted EBITDA of €1.88-€1.93 billion for the full year 2024. [5]

Ferrari’s order book continues to stretch out about 20 months on average, providing exceptional revenue visibility. The carmaker indicated that increased volume and sales of the higher-priced Purosangue should drive a further profit margin expansion in 2024, leading to adjusted EBITDA margins improving from 35% in 2023 to over 34% in 2024. [6]

CEO Benedetto Vigna emphasized Ferrari’s pricing power and the long waiting lists for new models even amidst global economic uncertainty and inflation. “The passion for Ferrari continues to grow,” stated Vigna. “Clients worldwide confirm their great interest in our products, with order intake still covering more than two years of production.” [7]

Lewis Hamilton Signs with Ferrari Starting in 2025

In a shocking move that rocked the Formula 1 world, Ferrari announced that 7-time F1 champion Lewis Hamilton signed a multi-year contract to race for Ferrari beginning with the 2025 season after his current Mercedes contract expires. [8]

Hamilton will team up with current Ferrari driver Charles Leclerc to create a potential F1 “super team” and try to return the iconic Scuderia team back to championship glory. Hamilton emphasized he is “hungry for more success in F1” and believes he can capture additional titles with Ferrari’s improving competitiveness and resources. [9]

The blockbuster signing comes after Ferrari made major strides to catch up with championship leaders Red Bull and Mercedes in 2022. Ferrari finished 2nd in the constructor standings last year, its best result since 2019.

Many analysts see Hamilton’s move as further validation of Ferrari’s improving performance and cementing its status as the world’s strongest luxury car brand. Morgan Stanley analyst Adam Jonas stated, “The opportunity to partner with Lewis – a proven champion who transcends the sport – enhances the Ferrari brand halo and will lead to benefits on and off the track.” [10]

Ferrari Cements Position as World’s Leading Luxury Auto Brand

Ferrari’s blowout earnings results, increased 2024 guidance, and signing of Lewis Hamilton capped off a watershed year for the Prancing Horse. Demand for new and used Ferrari models continues to eclipse supply even amidst global recession fears. This allows Ferrari to increase prices and margins while expanding output gradually.

CTO Vigna emphasized Ferrari will keep exclusivity in mind even while “pushing on innovation and on each frontier relevant to Ferrari owners.” The company remains on pace to unveil over 15 new models by 2026, covering both ICE and hybrid powertrains. [11]

Ferrari saw its market capitalization blow past €100 billion for the first time to cement its status as the world’s most valuable luxury car brand. The company now sits behind only electric vehicle juggernaut Tesla in overall auto brand value. [12]

Thanks to its unparalleled exclusivity, branding power, and production constraints, Ferrari continues to set itself apart from other luxury automakers. UBS analyst Patrick Hummel summarized, “Ferrari remains in poll position in the global luxury auto race.” [13] Investors cheered the blowout earnings and F1 signing by bidding Ferrari’s shares to all-time highs, cementing its leadership as the world’s top luxury car stock.

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AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

To err is human, but AI does it too. Whilst factual data is used in the production of these articles, the content is written entirely by AI. Double check any facts you intend to rely on with another source.

By AiBot

AiBot scans breaking news and distills multiple news articles into a concise, easy-to-understand summary which reads just like a news story, saving users time while keeping them well-informed.

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