RACE Earnings Prediction
The chart below shows how RACE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RACE sees a -2.33% change in stock price 10 days leading up to the earnings, and a +4.05% change 10 days following the report. On the earnings day itself, the stock moves by +2.01%. This data can give you a slight idea of what to expect for the next quarter's release.
RACE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.74B
13.93%
5.54%
Gross Margin
50.20%
2.85%
1.01%
Operating Margin
26.81%
10.24%
-5.06%
Net Margin
22.21%
14.90%
-2.59%
EPS
2.14
32.10%
2.88%
No Data Available
RACE Earnings Analysis
Ferrari NV Corporation (RACE.N) Earnings Conference Call
Positive
Strong Revenue Performance: Record full year revenues of approximately €6.7 billion, reflecting double-digit growth compared to the previous year.
Net Profit Increase: Net profit reached €1.5 billion, corresponding to a diluted EPS of €8.46, up 22.6% versus the prior year.
Record Free Cash Flow: Industrial free cash flow generation surpassed €1 billion for the first time, demonstrating strong cash management.
Personalization Revenue Impact: Personalization revenues accounted for approximately 20% of total revenues from cars and spare parts, driven by high demand for models like the Purosangue and Daytona SP3.
Margin Improvement Highlights: The EBITDA margin improved to 38.3% and EBIT margin expanded to 28.3%, showcasing effective cost management and a favorable product mix.
Negative
Stagnant Shipment Growth: Shipments increased by only 89 units compared to the previous year, indicating a stagnation in growth despite the introduction of new models.
Model Phase-Out Impact: Five models were phased out during the year, including popular models like the Portofino M and SF90 Stradale, which could negatively impact brand visibility and customer interest.
Rising Industrial and R&D Costs: Higher industrial and R&D expenses were reported, driven largely by racing and innovation activities, which may strain future profitability if not managed effectively.
Rising Effective Tax Rate: The effective tax rate is expected to rise to around 22.5%, up from 19.2%, which could reduce net profitability in the upcoming year.
Liquidity Concerns from Inventory: A negative contribution from net working capital provisions was noted, primarily due to an increase in inventory value and higher trade receivables, indicating potential liquidity issues.
RACE FAQs
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RACE Earning Call Sentiment
Ferrari N.V. (NYSE:RACE) Q4 2024 Earnings Call Transcript
RACE.N
1.13%Positive
Ferrari's earnings call highlights strong financial performance, including double-digit revenue growth and increased net profit. The launch of six new models, including an electric one, and significant progress towards carbon neutrality are positive indicators. Shareholder returns through dividends and repurchases further boost sentiment. While competitive pressures and supply chain challenges exist, Ferrari's strategic initiatives and optimistic outlook, particularly in personalization and sponsorship growth, outweigh these risks. The Q&A session reinforced confidence in margin expansion and price increases, supporting a positive sentiment.
