Ferrari Stock Races Higher on Earnings. What to Know.

Sales rose 11% despite lower deliveries. Ferrari delivered 3,245 vehicles, down from 3,327 in the fourth quarter of 2022. Revenue per vehicle delivered in the fourth quarter hit about €469,000, or $507,000, up about 14% year over year.

Looking ahead, Ferrari expects 2024 earnings per share of more than €7.50 on sales of €6.4 billion, in line with Wall Street projections for earnings per share of €7.54 on sales of €6.4 billion.

It’s good enough for investors. Shares were up 11.6%, at $387.08, in midday trading on Thursday. The
S&P 500
and
Nasdaq Composite
were up about 0.7% and 0.8%, respectively.

Current prices would be a new all-time high and the first new record since Dec. 11, 2023, when it closed at $371.96, according to Dow Jones Market Data. Ferrari stock is on pace for largest percent increase in more than three years.

Coming into Thursday trading, Ferrari stock was up about 2% year to date, and up about 37% over the past 12 months. That isn’t car maker-like stock performance.
BMW
 shares are down about 3% this year, and up about 2% over the past 12 months.
Mercedes-Benz Group
shares are up about 1% in 2024, but down 9% over the past 12 months.

What’s more,
BMW
and Mercedes shares trade for roughly six and five times estimated 2024 earnings, respectively. Ferrari trades for 42 times.

Ferrari trades more like a luxury-goods company—and then some.
LVMH Moët Hennessy Louis Vuitton
trades for 22 times. LVMH is expected to generate a 2024 operating profit margin of about 25%. Ferrari is expected to generate a margin of about 27%. Margins at BMW and Mercedes should be about 10% and 11%, respectively.

Write to Al Root at [email protected]