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]

Core Viewpoint - Ferrari (RACE) is positioned well to continue its trend of beating earnings estimates, supported by a strong history of performance in recent quarters [1][2]. Earnings Performance - Ferrari has consistently surpassed earnings estimates, achieving an average beat of 14.58% over the last two quarters [2]. - In the most recent quarter, Ferrari reported earnings of $2.28 per share against an expectation of $1.89, resulting in a surprise of 20.63% [2]. - For the previous quarter, the consensus estimate was $2.11 per share, while the actual earnings were $2.29, leading to a surprise of 8.53% [2]. Earnings Estimates and Predictions - Estimates for Ferrari have been trending higher, influenced by its history of earnings surprises [4]. - The stock has a positive Zacks Earnings ESP of +10.75%, indicating increased analyst optimism regarding its earnings prospects [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report scheduled for May 6, 2025 [7]. Earnings ESP Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [6]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [8].