Core Viewpoint - Ferrari has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3] Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, with a strong correlation observed between earnings estimate revisions and near-term stock performance [4][6] - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price movements [4] Ferrari's Earnings Outlook - The recent upgrade for Ferrari indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [5] - Over the past three months, the Zacks Consensus Estimate for Ferrari has increased by 8.4%, with projected earnings of $10.41 per share for the fiscal year ending December 2025, showing no year-over-year change [8] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7] - Ferrari's upgrade places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]

Core Insights - Visteon (VC) is currently rated as a Strong Buy (1) while Ferrari (RACE) holds a Buy (2) rating, indicating a stronger improvement in VC's earnings outlook compared to RACE [3] - Value investors utilize various valuation metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - Visteon has a forward P/E ratio of 14.06, significantly lower than Ferrari's forward P/E of 42.88, suggesting that VC may be more attractively priced [5] - The PEG ratio for Visteon is 4.72, while Ferrari's PEG ratio is slightly higher at 4.82, indicating that both companies have similar expected EPS growth rates [5] - Visteon's P/B ratio stands at 2.17, in stark contrast to Ferrari's P/B ratio of 26.85, further highlighting VC's relative undervaluation [6] Value Grades - Visteon has received a Value grade of A, while Ferrari has a Value grade of F, indicating that VC is perceived as a superior value option based on its solid earnings outlook and favorable valuation metrics [6]

Core Insights - Ferrari N.V. (RACE) demonstrated strong performance in Q2 2025, with revenues increasing by 12% year over year to €1.66 billion, driven by higher deliveries and effective pricing strategies [1][7] - The company has a filled order book extending into 2026, providing visibility in a volatile automotive market [1] Revenue and Earnings Performance - The company consistently beats earnings estimates, with an average surprise of 9.2% over the past four quarters [3][4] - Q2 2025 EPS was reported at $2.70, exceeding the consensus estimate of $2.57, with upward revisions for future EPS forecasts [4][8] Product Mix and Margins - A significant shift towards hybrids, which constituted 58% of shipments in Q2, has enhanced profitability, with EBITDA margins reaching 38.3% [2][8] - Personalization contributes approximately 20% to total revenues, allowing customers to spend significantly above base prices, thus enhancing brand loyalty and profitability [9][10] Strategic Positioning - Ferrari's low-volume production strategy, capped at under 15,000 units annually, maintains exclusivity and pricing power, supported by a two-year order backlog [10] - The company diversifies its income, with around 12% of quarterly revenues coming from brand-related activities, which is an increase from 10% a year ago [11] Valuation and Market Dynamics - Ferrari's forward P/E ratio exceeds 40X, reflecting a premium valuation compared to mainstream automakers, justified by predictable earnings growth and superior margins [12][14] - The stock has increased by 5% this year, outperforming a nearly 9% decline in the broader auto sector, indicating strong market positioning [14][16]

Market Trend - Ferrari accepts Ethereum payments in the U S and Europe [1] - Industry anticipates a potential bull run [1]

Cryptocurrency Adoption - Ferrari accepts Bitcoin (BTC) as payment [1] Consumer Sentiment - Expresses excitement about purchasing a Ferrari with BTC [1]

Core Viewpoint - Ferrari N.V. announces the continuation of its multi-year share buyback program, with an eighth tranche of up to Euro 360 million set to commence on August 22, 2025, and conclude by December 18, 2025 [1] Group 1: Share Buyback Program - The eighth tranche is part of a larger Euro 2 billion share buyback program initiated during the 2022 Capital Markets Day [1] - The Shareholders' Meeting held on April 16, 2025, authorized the purchase of up to 10% of the Company's common shares within an eighteen-month period [1] - The repurchase authority will expire on October 15, 2026, unless extended or renewed [1] Group 2: Execution Details - Ferrari has entered into a non-discretionary buyback agreement for up to Euro 280 million on the Euronext Milan market, with a primary financial institution making independent trading decisions [6] - An additional mandate for up to Euro 80 million will be executed on the New York Stock Exchange, where Ferrari will provide purchase instructions in compliance with applicable regulations [6]

Ferrari is one of 96 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Another stock in the Auto-Tires-Trucks sector, Visteon (VC) , has outperformed the sector so far this year. The stock's year-to-date return is 25.9%. The consensus estimate for Visteon's c ...

Financial Data and Key Metrics Changes - Total revenues reached approximately EUR 1.8 billion, a 4.4% growth year over year with flat deliveries [11] - EBITDA exceeded EUR 700 million, with an EBITDA margin of 39.7% and EBIT margin close to 31% [21] - Industrial cash flow was EUR 230 million, reflecting strong profitability [11][22] Business Line Data and Key Metrics Changes - Shipments were driven by the 296 GTS, Purosangue, and Roma Spider, while the Daytona SP3 saw lower shipments as it approaches the end of its life cycle [18] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, supported by the Daytona SP3 and SF90XX family [20][42] Market Data and Key Metrics Changes - The geographic breakdown reflects different product cycles and the company's deliberate allocation strategy, with a strong order book entering 2027 [9][19] - Demand for the 296 Speciale family is significantly high, nearly reaching full coverage of its life cycle [9] Company Strategy and Development Direction - The company is on track with product development, particularly with the upcoming Ferrari Electrica [7] - Continued investment in client centricity, product excellence, and technology advancement is emphasized [9] - The company aims to attract new customers with the Ferrari Amalfi, which combines sportiness and comfort [12][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic threats, including trade tensions and currency fluctuations [6] - The company anticipates a deliberate reduction in deliveries compared to 2024 to prioritize quality of revenues over volume [24] - Strong results are seen as a continuation of the growth path backed by a unique business model [26] Other Important Information - The company plans to resume its multi-year share repurchase program of EUR 2 billion by year-end [23] - Construction of a new truck dedicated to sports car testing is underway, enhancing product excellence [10] Q&A Session Summary Question: Comments on residual value developments in key markets - Management noted that there are positive trends in the UK market and actions are being taken to address pressures [30] Question: Details on why industrial costs in the second half are expected to be lower - Lower costs are attributed to an easier comparison with last year and reduced quality costs compared to previous expectations [31][32] Question: Clarification on R&D capitalization versus amortization - The change is due to the overlap of project developments and the pace of car development in racing [33] Question: Growth in cars and spare parts at 3% - The lower growth is linked to the product mix and ASP, with strong personalization trends continuing [37][42] Question: Impact of tariffs on pricing and customer behavior - Management indicated that there have been no significant cancellations or postponements due to tariffs, but some uncertainty exists [92] Question: Expectations for hybrid share in the next 6-12 months - The hybrid share is expected to fluctuate based on the models offered and their production volumes [75] Question: Clarification on CapEx and special projects - The company is on track with its CapEx commitments and will provide more details at the upcoming Capital Market Day [118] Question: Future electric vehicle launches - Management confirmed that the unveiling of the electric vehicle is on schedule for Q4 2025, with no delays [82]

Earnings Performance - Ferrari reported quarterly earnings of $2.7 per share, exceeding the Zacks Consensus Estimate of $2.57 per share, and up from $2.46 per share a year ago, representing an earnings surprise of +5.06% [1] - The company posted revenues of $2.03 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.45%, compared to $1.84 billion in the same quarter last year [2] Market Performance - Ferrari shares have increased approximately 17.4% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.30 on revenues of $1.95 billion, and for the current fiscal year, it is $10.27 on revenues of $8.2 billion [7] - The Zacks Rank for Ferrari is currently 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Ferrari belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 reached approximately EUR 1.8 billion, reflecting a 4.4% year-over-year growth with flat deliveries [9] - EBITDA exceeded EUR 700 million, indicating strong profitability [9] - Industrial cash flow was reported at EUR 230 million [9] - EBITDA margin stood at 39.7% and EBIT margin was close to 31% [20] Business Line Data and Key Metrics Changes - Shipments in Q2 were driven by the 2096 GTS, Purosangue, and Roma Spider, while the SF90XX family increased its contribution [16] - The Daytona SP3 saw lower shipments as it approached the end of its life cycle [16] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, supported by the Daytona SP3 and SF90XX family [19] Market Data and Key Metrics Changes - The geographic breakdown of revenues reflects different product cycles and a deliberate allocation strategy [17] - The company reported a strong order book entering 2027, with substantial demand for the newly launched Ferrari Amalfi [7] Company Strategy and Development Direction - The company is focused on product development, particularly with the upcoming Ferrari Electrica [6] - Continued investment in client centricity, product excellence, and technology advancement is emphasized [7] - The company aims to prioritize quality of revenues over volume in the second half of 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic threats, including trade tensions and currency fluctuations [5] - The company remains well-prepared to adapt to potential challenges, highlighting the importance of agility and flexibility [24] - Future guidance for 2025 has been confirmed with stronger confidence, removing previous risks on percentage margins [22] Other Important Information - The company is progressing with the construction of a new paint shop and a truck dedicated to sports car testing [8] - The Ferrari HyperSail project is under construction, marking the company's entry into the sailing sector [13] Q&A Session Summary Question: Comments on residual value developments in key markets - Management noted that the UK market was under pressure but actions taken are showing good trends [28] Question: Details on why industrial costs in the second half are expected to be lower - Lower costs are attributed to an easy comparison with last year, where significantly higher racing costs were incurred [29] Question: Clarification on R&D capitalization versus amortization - The change is due to the overlap of project developments and the pace of model approvals [31] Question: Cars and spare parts growth at 3% and ASP expectations - The lower growth is aligned with the planned deliveries and personalization trends remain strong [41] Question: Impact of tariffs on pricing strategy - The company will adapt its commercial policy once the new tariffs are implemented, separating tariff costs in invoices [39] Question: Positioning of the Ferrari Electrica - The vehicle is intended for both existing community members and new customers, with more details to be revealed in October [48] Question: Expectations for hybrid vehicle share - The share of hybrids is influenced by the product mix and expected to vary based on model availability [77] Question: Confidence in pricing strategy for upcoming launches - The company remains confident in maintaining constructive pricing strategies for future launches [102]