Ferrari NV gained after reporting first-quarter earnings that beat expectations as demand for its luxury sports cars surged and prices increased.
(Bloomberg) — Ferrari NV gained after reporting first-quarter earnings that beat expectations as demand for its luxury sports cars surged and prices increased.
Adjusted earnings before interest, taxes, depreciation and amortization rose to €537 million ($593 million), outpacing the average analyst estimate of €509.4 million, Ferrari said Thursday. Revenue totaled €1.43 billion.
The shares pared earlier losses to rise as much as 3%, the most since March 3.
Ferrari has been hiking the prices of some of its models with its wealthy clientele less acutely affected by soaring inflation and rising interest rates. Porsche AG on Wednesday said it plans to boost prices by as much as 8% in the US and Europe, while mass-market carmakers are preparing for a slowdown in demand.
READ MORE: Ferrari CEO Moves Fast Like Musk While Forging Own Path on EVs
The manufacturer is preparing to shift to electric vehicles and turn its historic factory in northern Italy into a hub for battery-powered cars. The first fully electric Ferrari is expected in 2025 and battery-only as well as plug-in hybrid models are slated to dominate the company’s portfolio in the second half of the decade. Hybrid cars made up 35% of shipments during the first quarter, the company said.
“Ferrari’s transition to an electrified future may increase its average transaction price and augment its mammoth €154,000 Ebitda per vehicle as ICE based products become specials,” Bloomberg Intelligence analyst Joel Levington said last month.
Ferrari in September unveiled the Purosangue, which looks more like a sport utility vehicle than the company’s traditional portfolio of low-slung, two-door sports cars. The move is expected to broaden Ferrari’s customer base.
(Updates with share prices move in third paragraph)
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