Toyota Motors (TM - Free Report) has increased their year’s earnings forecast by 9.7%. From a previous 1.55 trillion yen, the Japanese automaker expects year-ending March profits to be 1.7 trillion yen ($15.08 billion). Toyota also announced a higher operating profit by 150 billion yen to 1.85 trillion yen.
These sharpening outlooks are due to cost cutting and a weakening yen. The company has been increasingly sourcing their car parts locally, which is driving down production expenses. Despite rhetoric from President Donald Trump, Toyota announced that they have “no immediate plans” to change their production policy. The company imported about half the 2.449 million cars they sold in the United States last year which 26% of those were from Japan.
The yen has been weakening against the dollar for the past few years now. This has been one of Toyota’s biggest factors of growth of profit. Managing Officer of Toyota, Tetsuya Otake, stated that if the dollar strengthens by one yen, it adds 40 billion yen to its annual operating profit.
In preparation, Toyota has been hedging the possibility of the yen strengthening below 100 to the dollar; this occurred last in August of 2016. To mitigate this risk, the company has been increasingly marketing their locally produced cars in hopes of generating further yen denominated revenues.
Toyota closed down $1.18 to $113.31 today on the New York Stock Exchange. However, in after hours trading shortly after close, their stock is up 1.05% to $114.50.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Toyota Motors (TM - Free Report) has increased their year’s earnings forecast by 9.7%. From a previous 1.55 trillion yen, the Japanese automaker expects year-ending March profits to be 1.7 trillion yen ($15.08 billion). Toyota also announced a higher operating profit by 150 billion yen to 1.85 trillion yen.
These sharpening outlooks are due to cost cutting and a weakening yen. The company has been increasingly sourcing their car parts locally, which is driving down production expenses. Despite rhetoric from President Donald Trump, Toyota announced that they have “no immediate plans” to change their production policy. The company imported about half the 2.449 million cars they sold in the United States last year which 26% of those were from Japan.
The yen has been weakening against the dollar for the past few years now. This has been one of Toyota’s biggest factors of growth of profit. Managing Officer of Toyota, Tetsuya Otake, stated that if the dollar strengthens by one yen, it adds 40 billion yen to its annual operating profit.
In preparation, Toyota has been hedging the possibility of the yen strengthening below 100 to the dollar; this occurred last in August of 2016. To mitigate this risk, the company has been increasingly marketing their locally produced cars in hopes of generating further yen denominated revenues.
Toyota closed down $1.18 to $113.31 today on the New York Stock Exchange. However, in after hours trading shortly after close, their stock is up 1.05% to $114.50.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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