Ferrari Q4 Results Set Another Record, Initiates 2023 Guidance; FVE Raised to EUR 177

Wide-moat-rated Ferrari reported record fourth-quarter diluted earnings per share of EUR 1.21, EUR 0.05 better than a year ago but EUR 0.09 shy of the EUR 1.30 FactSet sell-side consensus. Record fourth-quarter revenue of EUR 1.368 billion (also beat consensus by 5%) was 17% higher than last year as cars and spare parts increased 23% but sponsorship revenue decreased 15%. Increased revenue was due to higher volume and favorable currency, partially offset by an 18% decline in engine revenue on reduced shipments to Maserati, whose supply agreement ends in 2023. Excluding favorable currency translation, organic revenue was up 12% compared with the year-ago period.