Ferrari (NYSE:RACE) NV shares raced higher after the company reported first-quarter earnings that beat Wall Street estimates on high demand for its luxury sports cars despite price increases.
For the period ended March 31, 2023, the Maranello, Italy-based luxury car maker reported earnings of $1.74 per share on revenue of $1.5 billion. The consensus earnings estimate was $1.57 per share on revenue of $1.5 billion.
The company’s revenue grew 15.2% on a year-over-year basis, as Ferrari hasn’t been shy about raising prices for its coveted cars which are typically snapped up by its wealthy clientele who are not so price-sensitive.
Invested reacted to the news, sending Ferrari's shares up 5.3% to $292.24 in morning trade on the New York Stock Exchange.
“Another exceptional quarter for Ferrari. Double-digit growth across the main parameters, with EBITDA margin at 37.6% reaching a new high and net profit up to €297 million,” Ferrari CEO Benedetto Vigna said in a statement.
“Our order book already extends into 2025 with an award-winning product portfolio. We have decided to re-open orders for the Purosangue, suspended due to an initial unprecedented demand, and launched the Roma Spider to further enrich our offer.”
The luxury sports-car company aims to start selling a fully electric vehicle in 2025.
“We are on track with our electrification journey on the development of both sports cars and infrastructures in Maranello,” added Vigna.
The company’s Maranello hometown draws thousands of motorheads and aspirational Ferrari owners every year.
The automobile industry is watching how Ferrari, which is steeped in tradition and has carved a name for itself with powerful, and loud internal-combustion engines will make the silent shift to fully electric models.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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