Ferrari N.V. (NYSE:RACE) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Ferrari N.V. (NYSE:RACE) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to US$406 in the week after its latest quarterly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.2%to hit €1.6b. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Ferrari

After the latest results, the 20 analysts covering Ferrari are now predicting revenues of €6.50b in 2024. If met, this would reflect an okay 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.6% to €7.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.50b and earnings per share (EPS) of €7.78 in 2024. 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.

The analysts reconfirmed their price target of US$430, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Ferrari at US$518 per share, while the most bearish prices it at US$301. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Ferrari's revenue growth is expected to slow, with the forecast 8.2% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$430, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Ferrari going out to 2026, and you can see them free on our platform here.

You can also see whether Ferrari is carrying too much debt, and whether its balance sheet is healthy, 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.