Core Insights - Broad Arrow Auctions, a subsidiary of Hagerty, successfully held its first European auction at the Concorso d'Eleganza Villa d'Este, achieving total sales of €31,172,625 with 78% of lots sold [2][3][11] Auction Highlights - The standout sale was a 1948 Ferrari 166 Spyder Corsa, which set a new auction record by selling for €7,543,750 [4][11] - Other notable sales included a 1989 Ferrari F40 Competizione for €2,312,500 and a 2003 Honda NSX-R for €934,375, which also set a world auction record [6][12] - The auction featured a dedicated BMW-only sale, with a 1980 BMW M1 selling for €602,500 [8][11] Sales Performance - The auction took place over two days, May 24 and 25, with over 8,000 viewers watching live on YouTube [3][11] - The auction included over 70 vehicles, showcasing a mix of classic and modern cars, attracting bidders from various countries [6][12] Future Plans - Broad Arrow Auctions plans to expand its European sale calendar throughout 2025, following the success of this inaugural event [9][12]

Core Insights - Ferrari's operations exhibit strong resilience, generating high margins typical of luxury brands, and has a sold-out vehicle priced at nearly $4 million [1] - The company has faced a 25% decline in sales in China during the first quarter, attributed to a shrinking luxury car market and weak consumer sentiment [2] - Ferrari is adapting to the electric vehicle (EV) trend in China, planning to launch its first fully electric supercar, the Elettrica, to boost sales [3][4] Sales and Market Dynamics - Ferrari has limited its sales in China to about 10% of total sales, which has helped it perform better than Western competitors amid a price war [2][6] - The upcoming Elettrica is expected to benefit from lower tariffs, with a tax rate of 30% compared to nearly four times that for 12-cylinder vehicles [4] - The company is poised for growth in China with the potential for increased sales of the EV due to favorable tax conditions [6] Growth Pathways - The launch of the Elettrica will occur in a three-step process, with a technological reveal on October 9 and a world premiere in spring 2026 [5] - The F80, priced at $3.8 million, is anticipated to significantly boost earnings, potentially contributing 20% of company profit from just 2% of units sold [8] - Ferrari's stock has outperformed the S&P 500, gaining 158% over the past three years, indicating strong market performance and growth potential [9] Future Prospects - If the Elettrica is successful in China, it could represent a significant win for Ferrari, enhancing its already strong market position [10]

Financial Data and Key Metrics Changes - In Q1 2025, royalty revenues increased over 79% to $560,000, which is an increase of more than $246,000 compared to Q1 2024 [4] - Royalty income was up 214% sequentially from Q4 2024, reflecting a strong demand in the automotive market [5] - The net loss for Q1 2025 was $177,687, or $0.01 per common share, which is $265,000 or 60% lower than the first quarter of the previous year [5][6] - Cash and cash equivalents stood at approximately $1,400,000, with working capital around $2,300,000, indicating a strong liquidity position [6] Business Line Data and Key Metrics Changes - Royalty revenues from the automotive market were up 128% compared to Q1 2024 and up 267% compared to Q4 2024 [5] - Revenues from the aircraft market also showed sequential growth in Q1 2025 compared to Q4 2024 [5] Market Data and Key Metrics Changes - The company is seeing increased demand for SPD SmartGlass in the automotive sector, with new car models expected to be introduced in 2025 [5][11] - The architectural market is anticipated to grow, particularly with the launch of retrofit applications [15][90] Company Strategy and Development Direction - The company aims to leverage its strong position in the smart glass technology market, focusing on automotive and architectural applications [10][90] - The introduction of retrofit applications is seen as a game changer, simplifying installation and reducing costs [15][90] - Regulatory support, such as the Dynamic Glass Act, is expected to encourage the adoption of SPD SmartGlass in buildings [90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards profitability, citing steady revenue growth and effective expense management [88][92] - The outlook for the smart glass industry remains promising, driven by superior technology and increasing demand [92][93] Other Important Information - The company remains debt-free and does not anticipate raising capital unless for strategic reasons [6][92] - The relationship with Gauzy, a key licensee, is strong and collaborative, contributing to the company's growth [91] Q&A Session Summary Question: What is the advantage of the dark particle technology? - The dark particle is considered the "holy grail" due to its aesthetic and technical benefits, potentially blocking more light and providing a neutral color [23][25] Question: Are there any effects of U.S. trade tariff policy on the business? - The premium market is not significantly affected by tariffs, and the company has a worldwide footprint that mitigates risks [35][60] Question: What progress is being made in the display area with LG? - There is ongoing public visibility in embedding OLED displays in windows, indicating a trend towards multifunctional glass [40] Question: What is the status of the dynamic glass act and office windows? - The retrofit application for office windows is expected to minimize disruption and costs, with projects already underway [80][84]

Core Insights - The article emphasizes the importance of long-term growth and dividend growth investing, focusing on identifying undervalued stocks and high-quality companies that provide cash for reinvestment [1]. Group 1: Investment Strategy - The company prioritizes profitability as a safer driver of gains compared to low valuation, highlighting the significance of margins, free cash flow stability and growth, and returns on invested capital [1]. - The research process involves in-depth analysis of stocks within specific areas of competence, leading to continuous exploration of high-quality companies [1]. Group 2: Company Position - The article mentions a beneficial long position in the shares of Ferrari (RACE), indicating a positive outlook on the company's stock performance [2].

Core Viewpoint - Ferrari (RACE) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Ferrari, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to a rise in stock price as investors respond positively to this trend [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Ferrari is projected to earn $9.30 per share, reflecting a 1.5% increase from the previous year, with a 1.1% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10].

Exhibit 99.1 Ferrari N.V. Interim Report At and for the three months ended March 31, 2025 CONTENTS | | Page | | --- | --- | | BOARD OF DIRECTORS | 1 | | INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | CERTAIN DEFINED TERMS | 1 | | INTRODUCTION | 2 | | FORWARD-LOOKING STATEMENTS | 3 | | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | | | Highlights | 5 | | Results of Operations | 8 | | Liquidity and Capital Resources | 12 | | Non-GAAP Financial Measures | 18 | | ...

Core Insights - Ferrari reported quarterly earnings of $2.42 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and up from $2.12 per share a year ago, representing an earnings surprise of 2.54% [1] - The company achieved revenues of $1.88 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.99%, and an increase from $1.72 billion year-over-year [2] - Ferrari has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.54 on revenues of $1.97 billion, and for the current fiscal year, it is $9.30 on revenues of $7.54 billion [7] - The trend of estimate revisions for Ferrari is favorable, contributing to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Market Performance - Ferrari shares have increased approximately 9.8% since the beginning of the year, contrasting with a decline of -3.9% in the S&P 500 [3] - The performance of Ferrari's stock may be influenced by management's commentary during the earnings call and the overall industry outlook [3][4] Industry Context - The Automotive - Original Equipment industry, to which Ferrari belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

The winner of the annual Adam Ferrari Health Science Scholarship will be announced in August 2025. More information about the scholarship, including essay guidelines and submission instructions, can be found at www.adamferrarischolarship.com. To learn more about Adam Ferrari and the mission of the Ferrari Foundation, please visit www.theferrarifoundation.org. Applicants must be first-year students who have been accepted to and will be enrolling full-time at an accredited U.S. college or university beginning ...

Core Insights - The luxury car maker Ferrari has indicated that U.S. tariffs pose a potential risk to its profitability, reflecting broader concerns among various companies regarding the impact of tariffs on earnings and financial forecasts [1][2] Company-Specific Summaries - **Ferrari**: The company noted a potential risk of a 50 basis points reduction to earnings in 2025 due to the introduction of import tariffs on European cars into the U.S. [2] - **Mattel**: The CEO expressed uncertainty about the evolving tariff situation and announced a pause on full-year guidance, indicating potential price increases for toys if necessary [3] - **Ford**: The automaker expects tariffs to reduce its earnings before interest and taxes by approximately $1.5 billion in 2025 and has suspended its full-year guidance due to potential supply chain disruptions [3] - **Cummins**: The company withdrew its 2025 forecast, citing growing economic uncertainty driven by tariffs [4] - **Apple**: The company anticipates a $900 million hit to its bottom line in the second quarter due to tariffs, complicating future predictions [4] - **Amazon**: The company stated that its future results are "inherently unpredictable" due to global economic conditions and tariff policies [5] - **General Motors**: The company lowered its earnings forecast for 2025 to between $10 billion and $12.5 billion, down from $13.7 billion to $15.7 billion, adjusting to the new trade policy environment [6] - **McDonald's**: Reported a 3.6% decline in U.S. same-store sales in the first quarter of 2025, the largest decrease since 2020, attributing it to consumer uncertainty [6] - **Stellantis**: Suspended its full-year financial guidance for 2025 due to tariff-related uncertainties [6] - **Mercedes**: Pulled its full-year outlook for 2025, citing high volatility regarding tariff policies [6] - **UPS**: Withdrew its full-year guidance after previously forecasting revenue of $89 billion for 2025, citing macroeconomic uncertainty [6] - **Kraft Heinz**: Lowered its full-year outlook due to a volatile operating environment influenced by tariffs and inflation [7] - **JetBlue**: Pulled its full-year outlook for 2025 due to macroeconomic uncertainty [7] - **Snap**: Declined to issue guidance for its second quarter, citing uncertainty in macroeconomic conditions affecting advertising demand [8] - **Volvo**: Warned that 2025 would be challenging due to macroeconomic and geopolitical developments, including tariffs [9] - **PepsiCo**: Lowered its earnings forecast for 2025, expecting more volatility and higher supply chain costs due to tariffs [9] - **Procter & Gamble**: Lowered its sales growth projections for the year, citing a challenging consumer and geopolitical environment [9] - **American Airlines**: Took a cautious approach to growth after pulling its full-year guidance, citing significant weakness in demand due to economic uncertainty [9] - **Skechers**: Withdrew its full-year outlook, attributing it to macroeconomic uncertainty from global trade policies [9] - **Thermo Fisher Scientific**: Withdrew its full-year profit forecast, expecting a $400 million hit in sales to China due to tariffs [10] - **Chipotle**: Lowered its full-year same-store sales growth expectations, anticipating reduced consumer spending due to economic concerns [11] - **Alaska Airlines**: Pulled its full-year 2025 guidance due to recent economic uncertainty [11] - **Southwest Airlines**: Withdrew guidance for 2025, citing macroeconomic uncertainty [11] - **United Airlines**: Held its full-year forecast but issued a lower earnings guidance for 2025 due to unpredictable economic conditions [11] - **Logitech**: Withdrew its outlook for the 2026 fiscal year due to ongoing tariff uncertainty [11] - **Walmart**: Announced it would pull forecasts for operating income, citing a growing range of outcomes due to tariffs [11] - **Delta**: Pulled its full-year guidance due to broad macro uncertainty [12]

Group 1 - Ferrari's revenue has been consistently growing, with a 5-year historical annual growth averaging 18.3% [1] - The company's unique moat is supported by its rich heritage and scarcity [1] - Key growth catalysts for Ferrari include the rising global popularity of its brand [1]