Ferrari ($RACE) reported strong earnings on Thursday, and the stock reacted by jumping 6% and closing the week at a new all-time high.
Third quarter profits rose by 46% from last year, in large part due to customers purchasing higher-end car models, growth in shipments, and customers spending more on personalizing their cars.
Key earnings figures are as follows:
Earnings per share: 1.82 euros vs. 1.60 euros expeted
Revenue: 1.54 billion euros vs. 1.47 billion euros expected
Shipments: 3,459 vs. 3,188 in Q3 2022
The company also revised guidance for the year, raising expectations for net revenues, EBITDA, free cash flow, and and diluted EPS. This signals that the company is outperforming prior expectations. Raising guidance is also an indicator for investors that the company may be undervalued.
Despite fears that inflation would slow demand for luxury goods such as sports cars, it is clear that Ferrari hasn’t seen any impact, with their order book being at its highest ever levels.
Ferrari ($RACE) is a stock to watch as it is now making new all-time highs.
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