Ferrari N.V. (BIT:RACE) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Investors in Ferrari N.V. (BIT:RACE) had a good week, as its shares rose 7.0% to close at €430 following the release of its first-quarter results. Results were roughly in line with estimates, with revenues of €1.8b and statutory earnings per share of €2.30. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, Ferrari's 20 analysts are now forecasting revenues of €7.19b in 2025. This would be a credible 4.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €9.02, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €7.21b and earnings per share (EPS) of €9.03 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Ferrari

The analysts reconfirmed their price target of €436, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Ferrari analyst has a price target of €548 per share, while the most pessimistic values it at €360. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Ferrari's revenue growth is expected to slow, with the forecast 6.0% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.2% annually. So it's pretty clear that, while Ferrari's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €436, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Ferrari. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ferrari analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Ferrari that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.