Feb 2, 2023
Ferrari Raises Earnings Outlook on Robust Luxury-Car Demand
(Bloomberg) -- Ferrari NV raised its outlook on strong demand for high-margin models like its new €390,000 ($428,000) Purosangue crossover.
The Italian luxury-car maker now expects adjusted earnings before interest, taxes, depreciation and amortization of as much as €2.18 billion ($2.4 billion) this year, up from as much as €2 billion announced in June. Ferrari also reported fourth-quarter sales and operating profit that beat analyst estimates.
“Despite a complex global macro-scenario, we look ahead with great confidence,” Chief Executive Officer Benedetto Vigna said Thursday, adding that the company is seeing “persistently high demand for our products worldwide.”
Ferrari has hiked prices of some of its models and is benefiting from wealthy buyers less acutely affected by soaring inflation and rising interest rates. The manufacturer is preparing to shift to electric vehicles and turn its historic factory in northern Italy into a hub for battery-powered cars.
Ferrari rose as much as 2.3% in Milan. The shares have climbed 17% this year.
The carmaker’s unit sales rose by nearly a fifth last year, with growth strongest in China and the Americas. Ferrari said it expects to generate some €5.7 billion in revenue in 2023.
Read More: Ferrari Plans to Rev Up Engine Noise for Its Electric Supercars
The first fully electric Ferrari is expected in 2025 and battery-only as well as plug-in hybrid models are slated to dominate the company’s portfolio in the second half of the decade. Three hybrid models accounted for 22% of shipments last year.
The manufacturer in September unveiled the Purosangue, which looks more like a sport utility vehicle than the company’s traditional portfolio of low-slung, two-door sports cars. The move is expected to broaden Ferrari’s customer base.
Ferrari’s fourth-quarter adjusted Ebitda rose to €469 million, beating the average analyst estimate of €451 million. Revenue climbed to €1.37 billion, slightly above the €1.29 billion projected by analysts.
(Updates with shares in fifth paragraph.)
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