Core Insights - Ferrari's luxury supercars are in high demand and highly profitable, with a stock increase of 578% over the past decade despite a recent dip following lower-than-expected 2030 guidance [1][11] Production and Exclusivity - Ferrari has increased production by 88% over the past 10 years while maintaining exclusivity, producing about 1,000 vehicles per model annually [3] - The limited availability of each model helps sustain high demand and allows for premium pricing [4] Product Mix and Innovation - The company has successfully developed hybrid vehicles, which accounted for 51% of sales in 2024, and will begin deliveries of its first electric vehicle next year [4][5] - Ferrari is navigating the challenges of the automotive market well by offering a mix of gasoline-powered supercars, hybrids, and soon, battery-powered sports cars [6] Financial Performance - Ferrari's operating margin is approximately 29%, significantly higher than many competitors in the industry [7] - Management projects that the operating margin will remain "at least 30%" by 2030 due to product mix, limited-edition models, and vehicle personalizations [9] - Earnings per share for the first half of the year were 4.68 euros ($5.42), reflecting a more than 10% increase from the previous year [10] Market Position - Despite a recent share price drop, Ferrari's stock has more than doubled over the past five years, outperforming the S&P 500's 86% gain [11] - The company is expected to continue driving demand while maintaining high operating margins, suggesting potential for long-term stock performance [11]

Core Viewpoint - Ferrari NV shares experienced a significant decline after the company issued cautious forecasts regarding future earnings, disappointing investors despite the launch of its first electric vehicle [1][2]. Financial Outlook - Adjusted earnings are projected to rise to at least €3.6 billion ($4.2 billion) by 2030, up from €2.72 billion this year, indicating a slower growth rate compared to previous forecasts made three years ago [1]. - The company has raised its net revenue guidance for this year to equal or exceed €7.1 billion, an increase from the prior guidance of €7 billion or more [5]. - Adjusted EBITDA for this year has been increased by 1.5% to at least €2.68 billion [5]. - For 2030, Ferrari's adjusted EBITDA margin is expected to be over 40%, which is below analysts' average estimate of 42% [5]. Market Reaction - Ferrari's stock fell as much as 16%, marking the steepest drop since its listing in Milan in January 2016, and is currently down about 12% for the year [2]. - Trading of Ferrari shares was temporarily halted due to volatility following the announcement [2]. Analyst Expectations - Analysts had high expectations leading into the investor day, with the highest proportion of buy ratings in five years [3]. - Some analysts anticipated that a potential lowering of electric vehicle targets would enhance Ferrari's earnings, expecting ambitious mid-term targets to be unveiled [4]. - The company's projections were viewed as underwhelming compared to high expectations, with targeted free cash of about €8 billion over five years seen as low against an expectation of €9 billion [6].