Ferrari Stock Continues Post-Earnings Surge

Ferrari (NYSE:RACE) is an Italian company that is engaged in the design, engineering, production, and sale of luxury performance sports cars around the world. Shares of Ferrari have climbed 18% month-over-month as of close on Tuesday, August 27, 2024. Meanwhile, its shares have climbed 44% in the year-to-date period. The stock has continued to receive a boost from the positive earnings it unveiled in early August.

On August 1, 2024, Ferrari released its second quarter (Q2) fiscal 2024 earnings. The company reported net revenues of €1.71 billion – up 16.2% compared to the previous year. Meanwhile, shipments rose 2.7% year-over-year to 3,484. Ferrari posted adjusted EBITDA of €511 million which was up 17% compared to the second quarter of fiscal 2023. It posted an adjusted EBIT margin of 29.9%. Adjusted EBITDA increased 13.7% from the previous year to €669 million with an adjusted EBITDA margin of 39.1%.

Ferrari posted industrial free cash flow generation of €121 million in Q2 FY2024. For the six months ending June 30, 2024, Ferrari reported total shipments of 7,044 – up 1% compared to the year-to-date period in 2024. Net revenues climbed 14% year-over-year to €3.29 billion and adjusted EBIT rose 16% to €953 million.

The carmakers’ earnings are still forecast to deliver solid growth going forward. Morgan Stanley released a report that suggested the stock had more upside. Ferrari continues to be a company to watch going forward.