Third-Quarter Performance Exceeds Expectations

Luxury sports car manufacturer Ferrari announced a 5% increase in third-quarter core earnings on Tuesday, driven⁤ by⁤ robust pricing power and strong demand for models like the SF90 XX and 12Cilindri⁣ lines. Earnings before interest, ⁤taxes, depreciation, and amortization (EBITDA) reached €670 million (approximately $726 million USD as of⁤ November⁤ 4, 2023) for the July to September period, surpassing analyst consensus estimates of €649⁢ million.

The⁤ positive results spurred a ⁣1.8% increase in milan-listed Ferrari shares by 12:10 pm⁣ GMT, reversing earlier losses. This rebound suggests investor confidence in the⁣ company’s continued ability to deliver strong financial performance.

personalization Drives Revenue Growth

Beyond vehicle sales, increased personalization options -⁣ bespoke features and customizations requested by clients – significantly contributed to the strong quarterly results.While vehicle shipments remained relatively stable at 3,401⁣ units, the higher revenue generated from these individualized orders boosted overall profitability.

2025 and Long-Term Outlook

Ferrari reaffirmed its full-year forecasts,having slightly improved them last month‍ alongside the presentation‍ of a new long-term business plan. The company projects net revenue⁣ of at least €7.1 billion (approximately $7.7 billion‍ USD) and adjusted EBITDA of at least €2.72 billion (approximately $2.95 billion USD) for 2025.

However, investor reaction to Ferrari’s longer-term financial targets, unveiled on ‍October 9th, had previously caused a nearly 20% decline in share value. Analysts viewed the 2030 guidance of approximately €9 billion in net ⁣revenue and at least €3.6 billion in⁢ adjusted EBITDA as conservative, indicating a potential for greater growth.