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Toyota's (TM) Operating Income and Revenues Improve Y/Y in Q1

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Toyota Motor Corporation’s (TM) operating income has risen 19% year over year to ¥682.6 billion ($6.3 billion) in first-quarter fiscal 2018 (ended Jun 30, 2018). Moreover, the net income has gained 7.2% year over year to ¥657.3 billion ($6 billion).

The company’s net revenues increased 4.5% year over year to ¥7.36 trillion ($67.5 billion) in first-quarter fiscal 2019. The Zacks Consensus Estimate was $65.87 billion.

Toyota Motor Corporation Price, Consensus and EPS Surprise

 

Segmental Results

All figures mentioned below are U.S. GAAP-based.

The Automotive segment’s net revenues rose to ¥6.6 trillion ($60.6 billion) in first-quarter fiscal 2019 in comparison with ¥6.4 trillion ($57.5 billion) in prior-year quarter while operating income increased to ¥602.5 billion ($5.5 billion) from the year-ago figure of ¥489.3 billion ($4.4 billion).

The Financial Services segment’s net revenues rose to ¥516.8 billion ($4.7 billion) in the quarter under review as compared with ¥503.7 billion ($4.5 billion) in the prior-year period while operating income declined to ¥73.5 billion ($674 million) from the year-earlier figure of ¥75.3 billion ($678 million).

All Other businesses’ net segmental revenues rose to ¥358 billion ($3.3 billion) in the quarter under discussion compared with ¥338 billion ($3 billion) in the last year. Operating income increased to ¥13.6 billion ($125 million) from the year-ago tally of ¥11.4 billion ($103 million).

Financial Position

Toyota had cash and cash equivalents of ¥3 trillion ($27.5 billion) as of Jun 30, 2018, compared with ¥3.1 trillion ($28 billion) as of Mar 31, 2018. Long-term debt amounted to ¥10.4 trillion ($95.4 billion) as of Jun 30, 2018, compared with ¥10 trillion ($90 billion) as of Mar 31, 2018.

At the end of first-quarter fiscal 2019, operating cash flow was ¥824 billion ($7.6 billion) compared with ¥1.1 trillion ($9.9 billion) registered on Mar 31, 2018.

Fiscal 2019 Guidance

Toyota expects total consolidated vehicle sales for fiscal 2019 to be roughly 8.9 million units compared with the prior expectation of 8.95 million. In fiscal 2018, 8.96 million units of consolidated vehicles were sold.

The company reaffirmed its projection of net revenues at ¥29 trillion ($273.6 billion) for fiscal 2019, thus, reflecting a 1.3% decline over fiscal 2018. Moreover, it reaffirmed its anticipation for operating income at ¥2.3 trillion ($21.7 billion), a 4.2% slump from the previous fiscal. Further, net income is anticipated to be ¥2.12 trillion ($20 billion), a 15% decrease from fiscal 2018.

Zacks Rank & Key Picks

Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Oshkosh Corporation (OSK - Free Report) and Mazda Motor Corporation (MZDAY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allison Transmission has an expected long-term growth rate of 10%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 6% upward over the past seven days.

Oshkosh has an expected long-term growth rate of 18.3%. The company’s stock has seen the Zacks Consensus Estimate for fiscal 2018 earnings being revised 2.8% upward over the past seven days.

Mazda Motor has an expected long-term growth rate of 6%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 3% upward over the past 30 days.

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