Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Technology

Technology

Ferrari Shares Fall Despite Company Maintaining Full-Year Forecasts

Ferrari Shares Fall Despite Company Maintaining Full-Year
BBC BBC
Ferrari Shares Fall Despite Company Maintaining Full-Year
BBC BBC

Listen to the article now

Ferrari Shares Fall Despite Company Maintaining Full-Year Forecasts

Ferrari (RACE.MI) reported a 13% increase in core earnings for the first quarter, buoyed by robust sales of high-end models like the exclusive Daytona SP3 and heightened demand for personalized vehicles. Despite these positive results, the luxury sportscar maker experienced a decline in its share price as it reaffirmed its full-year forecasts, failing to generate significant excitement among investors, even though CEO Benedetto Vigna characterized the start of the year as “very positive.”

The uptick in earnings was attributed to several factors, including strong pricing power, a favorable product mix, and increased contributions from various geographical markets. Vigna highlighted the company’s commitment to a “value over volume” strategy, which has consistently delivered double-digit growth in both revenue and profits, even amid stable car deliveries.

Ferrari’s order book extends well into 2026, with most models already sold out. Vigna emphasized the company’s focus on personalization, indicating ample opportunities for further customization to meet individual customer preferences, both internally and externally.

Analysts at Bernstein praised Ferrari’s results, noting the importance of product mix and pricing in driving margin development as the company progresses through its 2022-2026 plan. As part of this plan, Ferrari announced significant investments totaling 4.4 billion euros by 2026, alongside a commitment to achieving core earnings of 2.5-2.7 billion euros by the same year. Additionally, Ferrari plans to introduce its first fully electric car by late 2025.

Regarding financial performance, Ferrari’s adjusted EBITDA for the first quarter reached 605 million euros, meeting analyst expectations. However, shipments declined slightly to 3,560 units, with a notable decrease in the China, Hong Kong, and Taiwan regions.

Despite the positive results, Ferrari maintained its full-year adjusted EBITDA forecast of at least 2.45 billion euros for 2024. This decision led to a downturn in its Milan-listed shares, reflecting investors’ disappointment at the company’s reluctance to revise its guidance upwards. Nonetheless, Ferrari’s shares remain close to an all-time high, indicating continued confidence in the company’s prospects.


Comment Template

You May Also Like

Auto Repair

Ferrari Q1 core earnings are up 27% after reopening Purosangue orders. On Thursday, Ferrari (RACE.MI) reported 27% growth in first-quarter core earnings, exceeding expectations....

Business

Ferrari NV unveiled a new limited-run retro model that the storied Italian manufacturer is billing as its most aerodynamically efficient car ever. The Daytona...

Business

Automobili Pininfarina, the car manufacturing company that produces Ferraris in Germany, announced that they will be building a $2 million electric hypercar. The blueprints...

Lifestyle

In 1994, Christian von Koenigsegg captivated the automotive world when he penned the original Koenigsegg Competition Coupe (CC). Four car generations later, the Agera...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok