Ferrari shares fell 7.4% in US trading Tuesday, marking their largest daily drop since March 2022 after third-quarter earnings slightly missed investor expectations.
Despite showing growth, the Italian luxury carmaker’s quarterly results and full-year forecasts did not exceed prior projections, which some investors had anticipated.
Ferrari’s third-quarter core earnings grew by 7%, fueled by high demand for premium, customizable models and a lineup including the 2-million-euro Daytona SP3 and limited series 499P Modificata. Ferrari also reported a 7% increase in sales to 1.64 billion euros, although shipments fell to 3,383 vehicles, down from 3,459 last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) reached 638 million euros, aligning with analyst expectations of 635 million euros.
Although Ferrari did not revise its full-year forecast beyond what it announced in August, the company remains confident in achieving at least 2.5 billion euros in adjusted EBITDA and 6.55 billion euros in sales by year’s end. CEO Benedetto Vigna attributed the steady guidance to strong demand and an order backlog extending into 2026.
Regional shipments varied, with growth in Europe, the Middle East, Africa, and the Asia-Pacific (excluding mainland China), which offset a 29% decline in China, Hong Kong, and Taiwan. Analysts suggest Ferrari’s exclusive market position may buffer it from challenges facing other luxury brands in China, where competitive pricing and economic conditions have pressured sales.
Ferrari’s stock has risen over 30% this year, outperforming other carmakers like Volkswagen and Mercedes-Benz, which faced revenue declines in recent quarters.
With input from CNBC, Bloomberg, and the Wall Street Journal.
