Despite the relative drop in car shipments, Ferrari (NYSE:RACE) announced a 7% gain in core earnings in its Q3 results on Tuesday, driven by a better product mix and increased demand for vehicle personalization. Milan-listed Ferrari shares suffered extended losses following the news it decided against upgrading its full-year projection.

For 2023, Ferrari has originally projected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach at come in at least 2.5 billion euros ($2.7 billion). Nonetheless, Ferrari stock has jumped 40% YTD. Ferrari expressed in a statement growing confidence over posting its full-year financial targets. Moreover, its adjusted EBITDA for the July-September period was 638 million euros, somewhat higher than analysts' estimate of 635 million euros from a Reuters poll.

• Warning! GuruFocus has detected 4 Warning Signs with RACE.

Adding about 60 million euros to quarterly earnings, the company mentioned its improved product range, including premium offers and more pricing power. Demand stayed strong for luxury models, including the 2-million euro 12-cylinder Daytona SP3 and the 5.1-million euro 499P Modificata, a track-only variant. Emphasizing ongoing demand in the high-performance sports vehicle market, Ferrari CEO Benedetto Vigna observed that the premium manufacturer boasts "exceptional order book visibility well into 2026."

This article first appeared on GuruFocus.