Ferrari N.V. Just Beat EPS By 11%: Here's What Analysts Think Will Happen Next

As you might know, Ferrari N.V. (NYSE:RACE) just kicked off its latest interim results with some very strong numbers. Ferrari beat earnings, with revenues hitting €3.3b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. 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.

See our latest analysis for Ferrari

Taking into account the latest results, the consensus forecast from Ferrari's 21 analysts is for revenues of €6.62b in 2024. This reflects a modest 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.0% to €7.95. In the lead-up to this report, the analysts had been modelling revenues of €6.52b and earnings per share (EPS) of €7.78 in 2024. So the consensus seems to have become somewhat more optimistic on Ferrari's earnings potential following these results.

The consensus price target was unchanged at US$450, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Ferrari analyst has a price target of US$520 per share, while the most pessimistic values it at US$307. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 8.3% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Ferrari is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ferrari following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ferrari going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Ferrari's balance sheet, and whether we think Ferrari is carrying too much debt, for free on our platform here.

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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.

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