Ferrari Q4 Earnings Top Estimates, CEO Highlights 'Robust Growth' In 2025

Ferrari N.V. (NYSE: RACE) reported strong fourth-quarter results, surpassing Wall Street estimates and driving a 9.10% surge in its stock price. The luxury sports car manufacturer's CEO, Benedetto Vigna, highlighted the company's robust growth prospects for 2025, with expectations for net revenues greater than 7.0 billion euros, adjusted EPS of greater than or equal to 8.60 euros, and adjusted EBITDA greater than 2.68 billion euros with a margin greater than 38.3%.

Ferrari's quarterly sales growth of 14% year-over-year to $1.85 billion (1.74 billion euros) and adjusted EBITDA rose 15.2% Y/Y to 643 million euros, with a margin expansion of 40 basis points Y/Y to 37.04%, reflect the company's strong performance. The company's robust growth outlook is driven by several factors:

1. Strong Product Mix and Personalization: Ferrari's rich product mix, including new models like the Ferrari Purosangue, Roma Spider, and 296 GTS, along with increased demand for personalizations, has contributed to the company's financial success. The deliveries of the 12-cylinder Daytona SP3 and a few units of the track-only 499P Modificata also supported the strong product mix.
2. Expansion into New Markets and Segments: Ferrari has been expanding its product portfolio to cater to new markets and customer segments. The introduction of the Ferrari Purosangue, a crossover SUV, and the Roma Spider have contributed to the company's growth. Additionally, Ferrari plans to launch its first fully-electric car in the final quarter of 2025, which is expected to further boost sales and attract new customers.
3. Innovation and R&D Investments: Ferrari continues to invest in research and development, focusing on both internal combustion engines and electric powertrains. The inauguration of the e-building and the new E-Cells Lab demonstrate the company's commitment to innovation and staying ahead of the competition. These investments are expected to drive future growth and maintain Ferrari's position as a leader in luxury sports cars.
4. Limited Exposure to China: Unlike some of its competitors, Ferrari has limited exposure to the Chinese market, with sales in the country accounting for less than 10% of overall deliveries. This strategy helps Ferrari mitigate the impact of economic challenges and intense competition from local manufacturers in China, which have been launching new models at huge discounts.

Ferrari's strategy of preserving brand exclusivity through controlled sales and limited exposure to lower-margin regions like China has a positive impact on its overall profitability and growth prospects. The company's focus on maintaining a strong product mix and increasing demand for personalizations has allowed Ferrari to achieve robust growth and reach its profitability targets ahead of schedule. By keeping sales in China below 10% of its overall deliveries, Ferrari avoids the lower margins associated with high taxes in that region. This strategy enables the company to maintain its premium positioning and continue to deliver strong financial performance.



In conclusion, Ferrari's strong fourth-quarter results and robust growth outlook for 2025 reflect the company's commitment to innovation, expansion into new markets, and preservation of brand exclusivity. With a focus on revenue quality over volumes, Ferrari is well-positioned to maintain its luxury image and deliver exceptional value to its customers. Investors should consider capitalizing on the current levels to buy more shares before Ferrari potentially revisits its March 2024 highs. Rating: Maintain Buy.

Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Consider this article as supplementing your required research. Please always apply independent thinking.