Ferrari profit jumps 24% as demand pushes waiting list into 2025

Ferrari Ltd said on Thursday its first-quarter profit rose 24% to 297 million euros ($328.8 million) on a 10% rise in shipments, as strong demand for its latest models boosted profitability.

“Our order book already extends to 2025,” CEO Benedetto Vigna said in a statement.

Ferrari’s revenue and profit both solidly beat Wall Street’s estimates, and the company maintained its upbeat guidance for the full year. Shares were up more than 5% in early trading following the news.

Here are the key numbers of Ferrari first quarter earnings reportCompared to Wall Street analysts’ consensus expectations as reported by Refinitiv:

• earnings per share: 1.63 euros, versus 1.48 euros expected.
• Income: 1.43 billion euros, versus 1.39 billion euros expected.

Revenue increased by 20% in the first quarter of 2022, from 1.19 billion euros to 1.43 billion euros.

This was due in large part to a richer mix of models sold and an increase in “personalization”, the company’s term for its long list of options that can add hundreds of thousands of dollars to the price of a new Ferrari. Ferrari is encouraging more of its customers to take advantage of the extended options available as part of a wider effort to increase its profit margins.

Those efforts are paying off: Ferrari’s EBIT (earnings before interest and taxes) profit margin, a widely watched figure, rose a full percentage point to 26.9% from 25.9% a year ago.

Ferrari shipped 3,567 vehicles in the quarter, up 10% from a year ago. It said the increase in shipments was driven by higher demand for its Portofino M convertible, the 296 GTB hybrid sports car, and the 812 Competizione, a limited-run equally-faster version of its twelve-cylinder flagship, the 812 Superfast.

Ferrari said it has started ramping up production of its latest seven-figure Icona model, the Daytona SP3, in the first quarter. It plans to build just 599 units of the Daytona SP3, which starts at just over $2.2 million. All 599 units have already been sold.

Despite the long waiting list, Vigna said Ferrari has reopened the order book for its upcoming Purosangue, which is V12-powered SUV like model With a starting price of around $400,000. Ferrari temporarily stopped taking orders for the Purosangue due to unexpectedly high initial demand.

Deliveries of Purosangue will begin before the end of the second quarter in Europe and in the third quarter in the United States.

Ferrari revealed a new model during the first quarter, a convertible version of its V8-powered Roma coupe.

Despite a better-than-expected quarter, Ferrari prior full year guidance, It still expects revenue of around 5.7 billion euros in 2023, with adjusted earnings per share of between 6 euros and 6.20 euros. It also expects full-year EBIT margin growth of approximately 26%, driven by the Daytona SP3 and Purosangue.