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Toyota (TM) Down Since Q3 Earnings Beat on Soft Revenue View
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Toyota Motor’s (TM - Free Report) shares have declined 7.4% since the company announced fiscal third-quarter results on Feb 9. While the Japan-based auto biggie managed to deliver a comprehensive beat, investors were likely disappointed by trimmed production and revenue guidance. Toyota has reduced fourth-quarter fiscal 2022 production forecast by 500,000 units from the prior view amid operations instability. Also, fiscal 2022 sales are now expected to total ¥29.5 trillion, slightly down from the prior projection of ¥30 trillion.
Toyota posted fiscal third-quarter fiscal 2022 earnings of $5.03 per share, which surpassed the Zacks Consensus Estimate of $3.74 on higher-than-expected revenues. The bottom line, however, declined from the year-ago earnings of $5.67 a share. Consolidated revenues came in at $68,530 million, beating the consensus mark of $67,258 million but contracting 12.4% year over year.
Toyota Motor Corporation Price, Consensus and EPS Surprise
The Automotive segment’s net revenues for the fiscal third quarter declined 5.5% year over year to ¥7.07 trillion ($62.25 billion). Operating profit came in at ¥595.3 billion ($5.24 billion), tailing off 26.7% year over year.
The Financial Services segment’s net revenues increased 6% from the prior-year quarter to ¥588.3 billion ($5.17 billion). The segment registered an operating income of ¥190.6 billion ($1.67 billion), up 25% from the third-quarter fiscal 2021 level.
All Other businesses’ net revenues summed ¥266.9 billion ($2.35 billion) for the reported quarter, almost on par with the comparable year-ago period. The unit incurred an operating loss of ¥1.1billion ($9.68 million) against the year-ago profit of ¥24.3 billion.
Financial Position
Toyota had cash and cash equivalents of ¥5.7 trillion ($50.12 billion) as of Dec 31, 2021. Long-term debt amounted to ¥14.4 trillion ($125.4 billion). Third-quarter operating cash flow was ¥769 billion.
FY22 Guidance
For fiscal 2022, Toyota projects fiscal 2022 consolidated vehicle sales of 10.3 million, indicating an increase from 9.9 million units sold in fiscal 2021. Fiscal 2022 sales are expected to total ¥29.5 trillion. Operating income is projected at ¥2.8 trillion, indicating growth of 27.4% year over year.
Pretax profit is estimated at ¥3.52 trillion, up from the previous forecast of ¥3.4 trillion. R&D expenses are envisioned at ¥1,180 billion, suggesting a rise from ¥1,090 billion spent in fiscal 2021. Capex is forecast at ¥1.3 trillion, declining from the previous projection of ¥1.35 trillion but indicating an increase from ¥1.29 trillion spent in fiscal 2021.
Honda (HMC - Free Report) reported earnings of 99 per share for third-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 86 cents. The bottom line, however, fell from the year-ago profit of $1.58 per share. Quarterly revenues totaled $32,469 million, topping the Zacks Consensus Estimate of $30,323 million. The top line, however, slid 10.1% year on year.
For fiscal 2022, Honda forecasts sales of ¥14.55 trillion, slightly declining from the previous projection of ¥14.6 million but implying a 10.5% uptick year over year. Operating profit is now forecast at ¥800 billion, increasing from the prior guidance of ¥660 billion and indicating a year-over-year rise of 21.2%. HMC currently carries a Zacks Rank #4 (Sell).
Nissan (NSANY - Free Report) posted fiscal third-quarter 2021 earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents. The bottom line also turned around from the year-ago loss of 8 cents a share. Consolidated revenues came in at $20,113 million, beating the consensus mark of $18,980 million but contracting 5.5% year over year.
For fiscal 2021, Nissan projects revenues of ¥8.71 trillion. Operating profit is envisioned at ¥210 billion, reflecting an increase of ¥30 billion from the prior view. The company forecasts a net profit of ¥205 billion, up ¥25 billion from the previous guidance. NSANY currently carries a Zacks Rank #3.
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Toyota (TM) Down Since Q3 Earnings Beat on Soft Revenue View
Toyota Motor’s (TM - Free Report) shares have declined 7.4% since the company announced fiscal third-quarter results on Feb 9. While the Japan-based auto biggie managed to deliver a comprehensive beat, investors were likely disappointed by trimmed production and revenue guidance. Toyota has reduced fourth-quarter fiscal 2022 production forecast by 500,000 units from the prior view amid operations instability. Also, fiscal 2022 sales are now expected to total ¥29.5 trillion, slightly down from the prior projection of ¥30 trillion.
Toyota posted fiscal third-quarter fiscal 2022 earnings of $5.03 per share, which surpassed the Zacks Consensus Estimate of $3.74 on higher-than-expected revenues. The bottom line, however, declined from the year-ago earnings of $5.67 a share. Consolidated revenues came in at $68,530 million, beating the consensus mark of $67,258 million but contracting 12.4% year over year.
Toyota Motor Corporation Price, Consensus and EPS Surprise
Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation Quote
Segmental Results
The Automotive segment’s net revenues for the fiscal third quarter declined 5.5% year over year to ¥7.07 trillion ($62.25 billion). Operating profit came in at ¥595.3 billion ($5.24 billion), tailing off 26.7% year over year.
The Financial Services segment’s net revenues increased 6% from the prior-year quarter to ¥588.3 billion ($5.17 billion). The segment registered an operating income of ¥190.6 billion ($1.67 billion), up 25% from the third-quarter fiscal 2021 level.
All Other businesses’ net revenues summed ¥266.9 billion ($2.35 billion) for the reported quarter, almost on par with the comparable year-ago period. The unit incurred an operating loss of ¥1.1billion ($9.68 million) against the year-ago profit of ¥24.3 billion.
Financial Position
Toyota had cash and cash equivalents of ¥5.7 trillion ($50.12 billion) as of Dec 31, 2021. Long-term debt amounted to ¥14.4 trillion ($125.4 billion). Third-quarter operating cash flow was ¥769 billion.
FY22 Guidance
For fiscal 2022, Toyota projects fiscal 2022 consolidated vehicle sales of 10.3 million, indicating an increase from 9.9 million units sold in fiscal 2021. Fiscal 2022 sales are expected to total ¥29.5 trillion. Operating income is projected at ¥2.8 trillion, indicating growth of 27.4% year over year.
Pretax profit is estimated at ¥3.52 trillion, up from the previous forecast of ¥3.4 trillion. R&D expenses are envisioned at ¥1,180 billion, suggesting a rise from ¥1,090 billion spent in fiscal 2021. Capex is forecast at ¥1.3 trillion, declining from the previous projection of ¥1.35 trillion but indicating an increase from ¥1.29 trillion spent in fiscal 2021.
Toyota currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Honda (HMC - Free Report) reported earnings of 99 per share for third-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 86 cents. The bottom line, however, fell from the year-ago profit of $1.58 per share. Quarterly revenues totaled $32,469 million, topping the Zacks Consensus Estimate of $30,323 million. The top line, however, slid 10.1% year on year.
For fiscal 2022, Honda forecasts sales of ¥14.55 trillion, slightly declining from the previous projection of ¥14.6 million but implying a 10.5% uptick year over year. Operating profit is now forecast at ¥800 billion, increasing from the prior guidance of ¥660 billion and indicating a year-over-year rise of 21.2%. HMC currently carries a Zacks Rank #4 (Sell).
Nissan (NSANY - Free Report) posted fiscal third-quarter 2021 earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents. The bottom line also turned around from the year-ago loss of 8 cents a share. Consolidated revenues came in at $20,113 million, beating the consensus mark of $18,980 million but contracting 5.5% year over year.
For fiscal 2021, Nissan projects revenues of ¥8.71 trillion. Operating profit is envisioned at ¥210 billion, reflecting an increase of ¥30 billion from the prior view. The company forecasts a net profit of ¥205 billion, up ¥25 billion from the previous guidance. NSANY currently carries a Zacks Rank #3.