Ferrari beat Wall Street's expectations after the worst stock crash in nine years

Luxury car maker Ferrari reported a rise in profit and revenue in the third quarter, beating analysts' expectations. The company showed lower production costs and a rise in personalized orders, ignoring high duties in the US. Still, the stock remains under pressure after collapsing on Oct. 9 when investors were disappointed by the long-term outlook for 2030.

Ferrari's third-quarter net profit rose 2% year-on-year to €382 million ($439.5 million). The consensus of analysts polled by LSEG was €367.33 million, CNBC reported. Revenue rose 7.4% to €1.77 billion on deliveries of 3,401 vehicles.

"We continue to grow steadily along the trajectory we have set out," Ferrari CEO Benedetto Vigna said in a press release. He recalled that at the Investor Day (Capital Markets Day on October 9) the company outlined sustainable growth benchmarks until 2030.

Ferrari also confirmed its revised October revenue forecast for 2025: at least €7.1 billion versus the previously expected €7 billion. Among the factors that led to the revised estimates, the company cites increased demand for expensive modifications and customized options, such as the SF90 XX and 12 Cilindria models, as well as lower production costs in the second half of the year. Ferrari's report showed that the luxury car maker has overcome concerns about rising duties in the U.S. and declining sales in China, Bloomberg writes .

American depositary receipts Ferrari at the auction on November 4 rose by 2.6% to $402.1. Trading in Milan ended at €350.7, showing a 3.2% increase in quotations. Since the beginning of the year, Ferrari shares have lost almost 15%.

Ferrari's financial results were published shortly after the sharpest fall in the company's shares in the history of public trading. On October 9, quotes collapsed by 15.4%, closing at €354. The collapse was so severe that trading in Milan had to be suspended, Reuters wrote. The stock plunge was the biggest daily decline since Ferrari went public on the Milan Stock Exchange in 2016. Investors were disappointed by Ferrari's 2030 ambitions presented at Capital Markets Day: the automaker said it aims to grow annual revenue to "around €9 billion" and earnings per share to €11.5 or higher by 2030. This forecast assumes a weaker rate of profit growth than what the company's management called three years ago, Bloomberg wrote.

This article was AI-translated and verified by a human editor