How did RACE's Q4 2023 earnings surprise analysts?

Ferrari's Q4 2023 earnings exceeded analysts' expectations in several key financial metrics, reflecting the company's robust performance and growth prospects:

1. **Revenue Growth**: Ferrari reported a 14% year-over-year increase in Q4 sales, reaching $1.85 billion, surpassing the analyst consensus estimate of $1.66 billion. This growth was driven by strong demand for high-end models and personalizations.
2. **Earnings Per Share (EPS)**: The company reported an EPS of $2.28, which beat the analyst consensus estimate of $1.89. This indicates a significant upside in profitability, reflecting efficient management and a strong market position.
3. **Operating Cash Flow and Free Cash Flow**: Ferrari's operating cash flow totaled $494 million, with a free cash flow of $217 million. These figures are indicative of the company's strong financial health and its ability to generate cash from operations.
4. **Order Book and Product Mix**: Ferrari's robust order book, which extends through 2026, underscores the company's confidence in its future growth. The demand for new models, including the 12Cilindri Coupe and Spider, is healthy, with 81% of new cars sold to existing clients, highlighting strong brand loyalty.
5. **Strategic Focus**: Ferrari's strategic focus on sustainability and its successful product launches, such as the Ferrari F80, contribute to its positive financial outlook. The company's advancements in research and development, including the new E-Cells Lab, also position it well for future growth.

Overall, Ferrari's Q4 2023 earnings exceeded analysts' expectations due to strong revenue growth, higher EPS, robust cash flows, a solid order book, and a strategic focus on sustainability and product innovation. These factors combined to deliver a strong financial performance that underscores Ferrari's resilience and growth prospects in the luxury automotive market.