By George Glover

Ferrari stock was rising on Tuesday after the Italian supercar maker posted better-than-expected earnings that defied the China slowdown plaguing many of its luxury peers.

The Prancing Horse's U.S. shares, which trade under the ticker RACE, climbed 3.3% to $443 in premarket trading. Futures tracking the benchmark S&P 500 were down 0.1%.

The gains came after Ferrari's top- and bottom-line fourth-quarter results beat Wall Street's expectations.

The company reported diluted earnings of EUR2.14 ($2.21) a share, as net revenue climbed 14% from a year ago to EUR1.74 billion ($1.79 billion). Analysts surveyed by FactSet were expecting earnings of EUR1.87 a share on revenue of EUR1.66 billion.

China, Hong Kong, and Taiwan accounted for less than 9% of total sales volume, meaning that overall delivery numbers rose 2% from a year ago despite a 21% slump in shipments to that region.

Ferrari's relatively low exposure to China has helped the stock to beat high-end car manufacturers like Mercedes-Benz Group and luxury goods makers like LVMH Moët Hennessy Louis Vuitton over the past year.

In November, Barron's argued that the run of outperformance can continue thanks to Ferrari's commitment to making sure demand carries on outpacing supply, coupled with the launch of a new $3.8 million supercar that can deliver a sizable earnings boost.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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February 04, 2025 07:48 ET (12:48 GMT)

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