Ferrari beats earnings estimates as deliveries decline; confirms full-year guidance ahead of Luce EV launch

Despite the Iran conflict threatening to slow Ferrari in the first quarter, the iconic supercar maker beat earnings estimates. Ferrari also confirmed its full-year guidance, suggesting that bringing forward certain deliveries in other regions has helped mitigate any impact in the Middle East, which remains an important luxury goods hub. Even with the results, Ferrari’s stock continued its year-long slide.

What drove the market’s anxiety

Investors appeared concerned that pulling some deliveries forward to offset disruption related to Iran could weigh on earnings for the rest of the year. However, Ferrari largely addressed those worries by reaffirming its full-year outlook.

By the numbers

Ferrari delivered 3,436 vehicles during the first quarter, down 157 from the prior year. Revenue rose 3% to 1.85 billion euros (or $2.16 billion), exceeding analysts’ consensus estimate of 1.83 billion euros.

Adjusted earnings per share came in at 2.33 euros, ahead of the 2.31 euros per share expected by analysts.

Full-year guidance confirmed

Ferrari confirmed full-year guidance of 9.45 euros in adjusted earnings per share on net revenue of 7.5 billion euros. The company also pointed to a strong sales mix and demand for personalization as factors supporting margins.

Upcoming electric-vehicle launch in focus

Another source of investor concern is the premiere of Ferrari’s Luce, the company’s first full-electric vehicle, scheduled for the coming weeks. Ferrari is effectively betting that demand will exist for a high-end electric model.

The timing is also complicated by developments at a major rival. Lamborghini canceled its first full-electric vehicle, the Lanzador, and will shift the concept into a plug-in hybrid. Lamborghini said interest in a full-electric vehicle in its target market was “close to zero.”