Ferrari: Fourth Quarter Earnings Takes It Back To Square One

YR Research5.34K FollowersFollow5ShareSavePlay(6min)CommentsSummaryFerrari exceeded low Q4 expectations, but growth remains tepid, with revenue up only 4% year-over-year and core car sales nearly flat.Non-car segments drove most of the growth, but declining shipments without compensating ASP increases highlight execution challenges in Ferrari’s model transition strategy.2026 guidance projects sub-5% revenue growth and no margin expansion, reflecting model changeovers and higher brand, racing, and digital investments.At 32x 2026 earnings, RACE’s valuation is prohibitive given muted growth; I reiterate a 'Hold' rating amid limited near-term upside. Wirestock/iStock Editorial via Getty Images Ferrari (RACE) investors are still shaken up from a disappointing investor day in late 2025, which essentially ended the dream that was Ferrari's double-digit growth expectations. In the months that followed, investors hoping to go back to the good oldThis article was written byYR Research5.34K FollowersFollowI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.