Ferrari N.V. Announces Third Quarter 2024 Financial Results
Ferrari N.V. (NYSE/EXM: RACE) has released its financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue (Euro) | 1,644M | - | +6.5% | 1,778M |
| Adjusted EPS (Euro) | 2.08 | 1.82 | +14.3% | 2.16 |
Ferrari reported a notable 6.5% year-over-year increase in net revenues, reaching €1,644 million, slightly below analyst expectations of €1,778 million. Adjusted earnings per share rose to €2.08, up from €1.82 the previous year, yet trailing the consensus estimate of €2.16. Overall, the metrics reflect a steady growth trajectory, albeit underperforming market expectations.
Revenue Breakdown by Segment
| Segment | Q3 2024 Revenue (Euro) | YoY Change |
|---|---|---|
| Cars and Spare Parts | 1,400M | +5.2% |
| Sponsorship, Commercial, Brand | 174M | +20.4% |
The Cars and Spare Parts segment, accounting for most of Ferrari’s revenue, saw a 5.2% increase. Sponsorship and brand revenues surged by 20.4%, driven mainly by new sponsorship arrangements, highlighting strong brand positioning.
Key Developments and Operational Highlights
- Ferrari unveiled the limited-edition F80 supercar, pursuing its legendary lineup strategy.
- Ceased operations of the Maranello trigeneration plant, advancing its carbon neutrality goals.
- Renewed its multi-year partnership with Shell, emphasizing commitment to sustained racing success.
- Continues to strengthen electrification expertise internally.
Executive Commentary
Benedetto Vigna, CEO of Ferrari, affirmed the company's alignment with its 2022 Capital Markets Day promises, emphasizing extensive product innovation and an exceptional order book forecasted through 2026. He highlighted Ferrari's strategic focus on growing personalizations and enhancing its hybrid offerings.
Share Repurchase Program
During the period from October 1, 2024, to November 1, 2024, Ferrari repurchased 157,278 common shares, valued at €66.4 million, as part of its ongoing share repurchase strategy.
Forward Guidance
Ferrari remains optimistic about its 2024 outlook, with expectations for a robust product mix and heightened personalization options. The company anticipates inflationary pressures but is committed to navigating these challenges through strategic brand investments and increased racing activities.
Stock Price Movement
Following the earnings announcement, Ferrari’s stock experienced a marginal decline of approximately 0.15%, indicating a slightly negative market reaction to the earnings results.
In summary, Ferrari has demonstrated a robust financial performance, though slightly under consensus forecasts for this quarter, supported by strong segment revenues and strategic innovations reinforcing long-term growth.
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