Ferrari FY 2023 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy RACE?
Source: seekingalpha
- Strong Earnings Report: Ferrari's FY 2023 Non-GAAP EPS of €8.96 exceeds expectations by €0.01, demonstrating the company's sustained profitability and bolstering investor confidence.
- Revenue Growth: The company reported annual revenue of €7.15 billion, a 7% increase year-over-year, surpassing market expectations by €30 million, reflecting robust market demand and a successful product mix.
- Profit Improvement: Operating profit (EBIT) reached €2.11 billion, up 12% from the previous year, with an EBIT margin of 29.5%, indicating successful cost control and operational efficiency, enhancing its competitive position.
- Strong Cash Flow: Industrial free cash flow amounted to €1.538 billion, a 50% increase year-over-year, providing strong support for future investments and shareholder returns, showcasing the company's solid financial health.
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Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 391.210
Low
349.74
Averages
448.83
High
555.00
Current: 391.210
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- EV Strategy Planning: Ferrari is assessing the timing for launching its first full-electric vehicle, the Elettrica, as entering the full-EV market too quickly could lead to costly adjustments later, while being too late might miss opportunities to cultivate future consumers, showcasing its cautious approach to electrification strategy.
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- Hybrid Sales Growth: In 2022, Ferrari's sales comprised 78% internal combustion engines and 22% hybrids; by the first half of 2025, hybrids accounted for 45%, indicating the company's proactive shift towards electrification, enhancing its competitive position in the market.
- Margin Improvement: Despite full-electric vehicles being less profitable than gasoline counterparts, Ferrari's growth in hybrid sales has not hindered its margin gains, which continue to rise, reflecting the company's ability to maintain profitability during its electrification journey and boosting investor confidence.
- EV Strategy Planning: Ferrari is assessing the timing for launching its first full-electric vehicle, the Elettrica, as entering the full-EV market too quickly could lead to costly adjustments later, while being too late might miss opportunities to cultivate future consumers, showcasing its cautious approach to electrification strategy.
- Market Opportunity Emerges: Although Ferrari's stock is generally priced at a premium, recent declines in its price-to-earnings ratio due to underwhelming guidance have created a relatively undervalued buying opportunity for investors, potentially positioning it as an unexpected quality choice in the EV investment landscape.
See More
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- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
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See More
Ferrari's Electrification Potential Surprises Investors
- Accelerated Electrification: In the first half of 2025, Ferrari's hybrid vehicle shipments reached 45%, a significant increase from 22% in 2022, indicating rapid progress in its electrification strategy and enhancing its competitive edge in the future market.
- Profitability Gains: While full-electric vehicles remain less profitable than traditional gasoline models, Ferrari's hybrid offerings have maintained a high gross margin of 58.25% even as shipment volumes increase, demonstrating that its electrification strategy does not compromise overall profitability.
- Unique Market Positioning: With strong product demand and exceptional profit margins, Ferrari stands out as a unique competitor in the EV market; despite its stock being priced higher than mainstream automakers, it continues to attract investor interest, reflecting confidence in its future growth.
- Future EV Plans: Ferrari is actively preparing for the launch of its first full-electric vehicle, the Elettrica, and while there are differing opinions on the timing of its release, successfully entering the full-EV market will be crucial for Ferrari's future development and may attract a new generation of consumers.
See More
Ferrari's Potential in the Electric Vehicle Market
- EV Market Share Shift: In 2022, Ferrari's shipments consisted of 78% internal combustion engines and 22% hybrids, but by the first half of 2025, this has shifted to approximately 55% internal combustion and 45% hybrids, indicating a proactive approach to EV transition despite profitability challenges for full-electric vehicles.
- Hybrid Profitability Gains: As Ferrari accelerates its hybrid vehicle shipments, it continues to enhance profitability, suggesting that its strategic positioning in the EV market not only maintains profit growth but also lays a foundation for future full-electric models.
- Strategic Importance of Elettrica: The upcoming full-electric model, Elettrica, will be pivotal for Ferrari's EV strategy, as entering the market too quickly could incur high adjustment costs, while delaying could risk missing the opportunity to cultivate future enthusiasts, reflecting a cautious approach to the EV market.
- Investment Timing and Market Positioning: Although Ferrari's stock is priced at a premium compared to mainstream automakers, recent low price-to-earnings ratios present an opportunity for investors, and given its strong brand demand and competitive advantages, Ferrari may be an overlooked potential stock in the EV sector.
See More
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- Quantum Battery Breakthrough: QuantumScape has achieved a 25-fold increase in ceramic processing speed, making commercial production of its solid-state batteries feasible, which is expected to significantly reduce charging times and costs, thereby enhancing market competitiveness.
- Ferrari's EV Strategy: Ferrari's hybrid vehicles accounted for 43% of third-quarter shipments, indicating its potential in the EV market, with its first full-electric vehicle expected to launch this year, which could further solidify its position as a premium EV manufacturer if successful.
- Market Competition Analysis: While QuantumScape has immense upside potential in solid-state battery technology, it carries higher investment risks due to competitors pursuing similar technologies, whereas Ferrari, with its brand strength and profitability, presents a more stable investment option.
- Investment Recommendations: Investors should consider limiting their position in QuantumScape to small amounts based on their risk tolerance, while Ferrari stands out as a quality automotive stock worth long-term attention due to its stability and profitability in the EV transition.
See More
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- Earnings Focus: European equity futures indicated a mixed opening on Wednesday, with FTSE 100 and German DAX futures both up by 0.2%, reflecting ongoing investor focus on corporate earnings that could sway market sentiment.
- Heineken Job Cuts: Dutch brewer Heineken announced plans to cut between 5,000 and 6,000 jobs over the next two years due to 'challenging market conditions', as part of its turnaround strategy aimed at accelerating growth, with operating profit expected to rise between 2% and 6% this year.
- Siemens Energy Profit Surge: Siemens Energy reported a nearly tripled net profit of €746 million ($889 million) for its fiscal first quarter, driven by robust demand from data center expansions that led to record-high orders, showcasing the company's strong market performance.
- Commerzbank Record Earnings: Commerzbank announced a record operating profit of €4.5 billion, primarily driven by net commission income and strong performance from its Polish subsidiary mBank, with net profit expected to exceed the original target of €3.2 billion in 2026, indicating solid business growth potential.
See More
