Despite a dip in vehicle shipments, Ferrari (NYSE) reported a strong 7% rise in its core Q3 earnings, crediting high demand for its premium models and extensive personalization options for the gain. This increase underscores Ferrari’s resilience in the luxury car market, despite the absence of an upgrade to its full-year forecast—a factor that led to a decline in Milan-listed Ferrari shares after the announcement.
Ferrari’s projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 were estimated to exceed 2.5 billion euros, aligning with the company’s commitment to reach its targets for the year. Ferrari’s Q3 EBITDA reached 638 million euros, narrowly exceeding the 635 million euro forecast made by analysts, indicating solid performance amidst challenging conditions in the automotive industry.
The company’s decision to emphasize higher-end models like the 12-cylinder Daytona SP3, priced at around 2 million euros, and the 499P Modificata track-only variant, priced at 5.1 million euros, played a significant role in this earnings boost. Ferrari CEO Benedetto Vigna highlighted that demand remains high for these specialized models, supported by an “exceptional order book visibility” that stretches well into 2026, demonstrating robust market confidence.
Beyond product demand, Ferrari’s customization services have attracted affluent buyers, allowing them to personalize vehicles to a significant extent—a trend increasingly popular in the ultra-luxury segment. This unique offering not only enhances customer satisfaction but also boosts Ferrari’s profit margins as clients opt for high-end, bespoke features.
While Ferrari’s stock saw a 40% increase year-to-date, the brand’s selective approach to volume has helped solidify its image as a luxury and exclusive car manufacturer. Ferrari remains focused on delivering elite, personalized experiences that keep demand robust, even in a fluctuating market, setting the stage for a promising outlook for the remainder of 2023 and beyond.
Elizabeth Puckett