Ferrari stock roared to all-time highs early Thursday after outpacing Q4 earnings forecasts. Meanwhile, Ferrari Formula 1 fans are ecstatic about reports that racing legend Lewis Hamilton may be donning a red suit for the 2025 season, rather than Mercedes‘ (MBGAF) black, white and green.
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Ferrari (RACE) reported adjusted earnings of 1.62 euros (about $1.75) per share, a 33% increase from last year. Net revenues for the quarter increased 11% to 1.52 billion euros ($1.65 billion). FactSet analysts expected earnings of 1.56 euros per share on 1.51 billion euros in revenue.
Ferrari delivered 1,493 cars to the Europe, Middle East and Africa market during the quarter, a 2% decline from last year. Deliveries to the Americas during Q4 rose 6% to 884 vehicles. However, total shipments fell 2% to 3,245 units, driven by a 25% drop in deliveries to mainland China, Hong Kong and Taiwan.
Full-year shipments rose 3% to 13,663 vehicles, offset by a 4% decline in China deliveries during the year.
Cars and spare parts revenue jumped 12% to 1.29 billion euros for the quarter. Sponsorship revenue increased 8% to 150 million euros for the quarter. Engine revenue rose 7% in Q4.
Full-year revenue jumped 17% to 5.97 billion euros, led by a 19% gain in cars and spare part sales. However, full-year engine revenue fell 18% due to lower shipments to Maserati, whose contract with Ferrari expired at the end of 2023.
Ferrari guided 2024 earnings to increase nearly 9% to 7.5 euros per share or more, on about 7% revenue growth to 6.4 billion euros or greater.
FactSet analysts expect 2024 adjusted earnings of 7.53 euros per share on 6.45 billion euros in revenue.
Ferrari Lands Lewis Hamilton
Meanwhile, seven-time F1 World Drivers’ Championship winner Lewis Hamilton is on the verge of a shock move to Ferrari from Mercedes, according to various media reports. Mercedes and Ferrari could make the announcement as soon as Thursday, according to sources familiar with the matter, but both teams have so far refrained from making comments.
Hamilton would likely join Ferrari for the 2025 season. He signed a two-year contract extension with Mercedes in 2023, which appeared to include an option to leave after one season, according to reports.
Hamilton, 39, has won six titles with Mercedes after joining the club for the 2013 season following the retirement of Michael Schumacher, and eventually tied Schumacher’s record for most Drivers’ World Championship titles in 2020.
Hamilton currently holds the record for most Grand Prix victories at 103 wins while Ferrari holds the lead for most Constructors’ World Championships at 16 titles. The Constructors World Championship takes into account team performance while Drivers World Championships focus on the performance of individual drivers.
Hamilton will team up with budding star Charles Leclerc at Ferrari. The duo would aim to dethrone Max Verstappen, the driver behind Red Bull’s current period of F1 domination.
Ferrari Stock
Ferrari stock leapt 10% early Thursday to all-time highs on earnings and the Hamilton news.
The move pushed RACE stock into a buy zone for a flat base with a 372.42 buy point, plotted off its previous record high from Dec. 11. Shares jumped strongly above their 50-day moving average.
Ferrari climbed 2.2% so far this year through Wednesday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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