Ferrari's Record Year Ignites Investor Excitement for Future

• Ferrari surpasses Wall Street projections, reporting a record-breaking year of profits, with a net profit of 1.26 billion euros for 2023 and adjusted EBIT of 1.62 billion euros, both annual records.

• Fourth-quarter revenue grows by 11%, reaching 5.97 billion euros for the year, marking a 17% increase. The company anticipates even stronger performance in 2024, with sales expected to exceed 6.4 billion euros and optimistic adjusted profit margins.

• Ferrari shares surge by about 12% on the New York Stock Exchange, reaching a new 52-week high of around $390 per share, fueled by the positive financial results and the CEO's expressed confidence in the company's future plans.

Ferrari is a luxury sports vehicle company that exceeded both the top- and bottom-line earnings projections of Wall Street for the fourth quarter, capping a record-breaking year of profits.

With 294 million euros, or $317.9 million, in the fourth quarter, the manufacturer recorded a net profit of 1.26 billion euros, or $1.36 billion, for 2023. With 372 million euros, or $402.3 million, in the most recent quarter, its adjusted earnings before interest and taxes, or EBIT, for the year came to 1.62 billion euros, or $1.75 billion. They were both annual records for the business.

With an 11% growth in the fourth quarter from 1.37 billion euros a year earlier in 2022, Ferrari's revenue climbed 17% to 5.97 billion euros, or $6.46 billion, last year.

These records are not anticipated to last for long, as Ferrari anticipates surpassing several of those times in 2024. More than 6.4 billion euros, or $6.9 billion, in sales is anticipated for this year, along with an adjusted per share profit of at least 7.50 euros and an adjusted EBIT margin of at least 38%. Its adjusted profit margins are anticipated to be comparable to 2023, if not somewhat less so.

On Thursday, Ferrari shares on the New York Stock Exchange surged by about 12% to around $390 per share, setting a new 52-week high. On December 11, the business reached its prior 52-week high of $372.42.

Ferrari shipped 13,663 cars in 2023, up 3% from the previous year. Of those, 3,245 were sent in the fourth quarter.

Ferrari's Optimistic Outlook

Ferrari CEO Benedetto Vigna expressed confidence in the company's business plan, emphasizing the significance of the upcoming year. In a statement, he remarked on the successful results in 2023, outlined ambitions for 2024, and highlighted the exceptional visibility on the order book. Vigna indicated that this positive outlook enables Ferrari to approach the high-end targets for 2026 with increased confidence, emphasizing the continued execution of their meticulously planned business strategy.

Ferrari's raw rate of profits growth is a light in the darkness for growth investors. If it's not enough, keep in mind that insiders and other shareholders have well-invested funds, and the CEO's compensation is fairly fair. While everyone has different tastes when it comes to investment, Ferrari does seem rather fascinating.