Ferrari Shares Jump After Earnings, New Targets Encourage Investors
By David Sachs
Ferrari shares jumped Thursday after the company posted full-year earnings and set 2024 targets that largely align with consensus.
At 1254 GMT, shares in the Italian sports-car company were up 5% to EUR339.80.
Ferrari posted a higher-than-expected after-tax profit for the fourth quarter at 294 million euros ($318.1 million) while reporting a record EUR1.26 billion for the full year, it said.
Its 2024 guidance--including revenue of more than EUR6.4 billion and an earnings before interest and taxes margin of more than 27%--largely aligns with consensus, which Bernstein analysts said might relieve traders concerned that Ferrari would continue to manage down expectations.
"4Q earnings, and the forward guidance provided by Ferrari during this period, has historically been a significant determinant of near-term trading," the analysts said. "We believe there is room for guidance to creep up over the year as Ferrari gains more visibility on personalization rates."
Ferrari's earnings per share for 2023 came in at EUR6.91, which Bernstein analysts noted beat the company's guidance by 2.3%, as expected.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
February 01, 2024 08:36 ET (13:36 GMT)
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