(News Bulletin 247) – The prancing horse group revealed increased results in the first quarter, thanks to its strategy based on vehicle personalization. But the results were only marginally better than expected and the company did not raise its outlook for 2024.

If Ferrari has been trailing Red Bull in Formula 1 for several seasons, its results remain high in car sales. The prancing horse group has published its accounts for the first quarter of 2024. The Italian car manufacturer, which on the stock market is more closely related to luxury groups like Hermès, revealed its first quarter accounts this Tuesday afternoon.

Vehicle deliveries remained stable over one year at 3,560 units, due in particular to a 20% drop in volumes in the Greater China region (i.e. also including Hong Kong and Macau).

But the company managed to increase its revenues by 11% in the first quarter to 1.585 billion euros.

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Customization as a leitmotif

“The start of the year was very positive: revenues and profits recorded double-digit growth and deliveries remained stable. These results were achieved thanks to a more robust country and product mix. sales were directed towards more profitable countries and models, Editor’s note) as well as a greater contribution from customizations”, declared the general director, Benedetto Vigna, quoted in the press release. “Our strategy of focusing on value rather than volume continues to be successful,” he added.

Vehicle customization activities consist, to simplify, of offering tailor-made vehicles to its customers according to their tastes and requirements. The independent research firm AlphaValue explained in January that these customization activities, which have better margins than others, represented around 15% of the company’s revenues, which intends to increase this share to 17% in the medium term.

On other lines, Ferrari’s adjusted operating profit stood at 442 million euros, up 15% year-on-year, while the corresponding margin stood at 27.9%. Net profit increased by 19% to 352 million euros.

Profit taking on the stock market

However, on the Milan Stock Exchange, Ferrari shares lost 2.6% in the middle of the afternoon, the market taking its profits on a stock which has nevertheless gained 27% since the start of the year.

The results were only slightly above expectations, with revenues beating consensus by 1.9% and adjusted operating profit by 1.8%, according to a consensus cited by Royal Bank of Canada.

Above all, Ferrari has not changed its outlook for 2024, still expecting revenues of more than 6.4 billion euros, adjusted operating profit of more than 1.77 billion euros, a corresponding margin of more than 27 % and adjusted earnings per share of more than 7.5 euros. The consensus is already further, with revenues of 6.5 billion euros, adjusted operating income of 1.83 billion euros, a margin of 28.2% and adjusted earnings per share of 7 .68 euros.

“We wonder if some investors were not expecting the group to exceed expectations and raise its targets. We therefore think that there could be a slight negative reaction on the stock market to today’s results”, concludes Royal Bank of Canada. The Canadian establishment believes that Ferrari should raise its 2024 outlook at the end of the second or third quarter.