- Wednesday, October 16, 2024
Ferrari, the renowned sports car manufacturer, has reported impressive fourth-quarter earnings, causing its stock to rise. This highlights the fact that Ferrari is more than just a car company.
According to the recently released financial report, Ferrari achieved earnings per share of €1.62 ($1.75), surpassing Wall Street's estimated €1.56. Additionally, the company generated sales of €1.52 billion ($1.64 billion), which exceeded the projected sales of €1.51 billion.
Despite a slight decline in deliveries, Ferrari experienced an 11% increase in sales. The company delivered 3,245 vehicles in the fourth quarter, compared to 3,327 in the same period last year. Impressively, the revenue per vehicle delivered reached approximately €469,000 or $507,000, reflecting a 14% growth from the previous year.
Looking ahead, Ferrari anticipates an EPS greater than €7.50 on sales of €6.4 billion for 2024, aligning with market expectations. This positive outlook has resonated well with investors, as Ferrari's shares surged by 6.5% during premarket trading, while S&P 500 and Nasdaq Composite futures also experienced minor gains of approximately 0.4% and 0.6% respectively.
Ferrari's stock performance is exceptional when compared to other car manufacturers. Year to date, Ferrari's stock has increased by approximately 2%, and over the past year, it has soared by an impressive 37%. In contrast, BMW shares have declined by about 3% this year and witnessed only a 2% increase over the past year. Similarly, Mercedes-Benz Group shares have risen by roughly 1% this year but fallen by 9% over the past year.
Moreover, when comparing price-to-earnings ratios, it becomes evident that Ferrari's stock is more in line with luxury goods companies rather than typical car manufacturers. While BMW and Mercedes shares are valued at approximately six and five times their estimated 2024 earnings respectively, Ferrari's stock trades at a significantly higher multiple of 42 times.
Ferrari's resemblance to a luxury goods company is further exemplified when compared to LVMH Moët Hennessy Louis Vuitton, which trades at 22 times its estimated earnings. Additionally, Ferrari is projected to generate an operating profit margin of around 27%, while LVMH expects a margin of approximately 25%. In contrast, BMW and Mercedes are anticipated to have profit margins of only 10% and 11% respectively.
Ferrari management has scheduled a conference call at 9 a.m. Eastern time to discuss the latest financial results. Analysts and investors will eagerly await further insights into the demand for luxury goods worldwide as the year progresses.
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