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Toyota (TM) Up 1.7% Since Q2 Earnings Miss on Raised Sales View
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Toyota (TM - Free Report) shares have moved up 1.7% since it posted second-quarter fiscal 2023 results on Nov 1. The company delivered mixed results, with earnings lagging the Zacks Consensus Estimate and sales beating the same. The stock price appreciation despite an earnings miss could be attributed to the raised guidance for fiscal 2023 revenues and pretax profit.
Japan’s auto giant posted fiscal second-quarter fiscal 2023 earnings of $2.30 per share, which lagged the consensus mark of $3.08. The bottom line also declined from the year-ago earnings of $4.09 a share. Consolidated revenues came in at $66,768 million, beating the consensus mark of $63,078 million but contracting 2.5% year over year.
Toyota — currently carrying a Zacks Rank #3 (Hold) — had cash and cash equivalents of ¥6.98 trillion ($48.23 billion) as of Sep 30, 2022. Long-term debt amounted to ¥17.26 trillion ($119.31 billion). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Toyota Motor Corporation Price, Consensus and EPS Surprise
The Automotive segment’s net revenues for the fiscal second quarter increased 22.1% year over year to ¥8.4 trillion ($60.88 billion). Operating profit came in at ¥453.7 billion ($3.28 billion), declining 21.4% year over year.
The Financial Services segment’s net revenues rose 24% from the prior-year quarter to ¥704.2 billion ($5.09 billion). The segment registered an operating income of ¥84.4 billion ($0.61 billion), down almost 50% from the second-quarter fiscal 2022 level.
All Other businesses’ net revenues totaled ¥271 billion ($1.96 billion) in the reported quarter, rising 6.5% from the comparable year-ago period. The unit generated an operating profit of ¥20.3 billion ($0.14 billion), marking a noticeable improvement from a loss of 0.1 billion incurred in the year0ago period.
FY23 Guidance
For fiscal 2023, Toyota projects consolidated vehicle sales of 8.8 million, indicating an increase from 8.23 million units sold in fiscal 2022. Fiscal 2023 sales are expected to total ¥36 trillion, implying an increase from ¥31.4 trillion recorded in fiscal 2022 and higher than the prior view of ¥34.5 trillion. Operating income is projected to be ¥2.4 trillion, indicating a decline of 19.8% year over year.
Pretax profit is estimated at ¥3.34 trillion, down from ¥4 trillion generated in fiscal 2022 but higher than the previous projection of ¥3.27 trillion. R&D expenses are envisioned at ¥1,200 billion, suggesting a rise from ¥1,124 billion spent in fiscal 2022. Capex is forecast at ¥1.54 trillion, signaling an uptick from ¥1.34 trillion spent in fiscal 2022.
Quarterly Releases of Other Legacy Automakers
General Motors (GM - Free Report) reported third-quarter 2022 adjusted earnings of $2.25 per share, surpassing the Zacks Consensus Estimate of $1.89. The bottom line surged 48% from the year-ago quarter's earnings of $1.52 per share. Revenues of $41,889 million beat the Zacks Consensus Estimate of $41,833.3 million. The top line soared 56.4% from the year-ago figure of $26,779 million.
For 2022, General Motors' full-year net income projection was reiterated in the range of $9.6-$11.2 billion. The adjusted EBIT forecast also remained unchanged in the range of $13.0 billion to $15.0 billion. The company continues to expect adjusted EPS in the band of $6.5-$7.5. The adjusted automotive free cash flow of $7 billion to $9 billion was also retained.
Ford (F - Free Report) reported adjusted earnings of 30 cents per share for third-quarter 2022, missing the Zacks Consensus Estimate of 31 cents. The bottom line declined 41.2% from the year-ago quarter's earnings of 51 cents. The company's consolidated third-quarter revenues came in at $39.4 billion, rising 10% year over year. Ford Automotive revenues were up 12% year over year to $37.2 billion but lagged the Zacks Consensus Estimate of $38.6 billion.
Ford's 2022 projections have been revised. Adjusted EBIT for 2022 is now estimated to be around $11.5 billion instead of the prior guided range of $11.5-$12.5 billion. Adjusted FCF is envisioned in the range of $9.5 billion-$10 billion for 2022, up from the prior range of $5.5-6.5 billion. The company envisions 10% growth in vehicle wholesale volumes for 2022. However, it anticipates headwinds from commodity prices and other inflationary costs to the tune of $9 billion for 2022.
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Toyota (TM) Up 1.7% Since Q2 Earnings Miss on Raised Sales View
Toyota (TM - Free Report) shares have moved up 1.7% since it posted second-quarter fiscal 2023 results on Nov 1. The company delivered mixed results, with earnings lagging the Zacks Consensus Estimate and sales beating the same. The stock price appreciation despite an earnings miss could be attributed to the raised guidance for fiscal 2023 revenues and pretax profit.
Japan’s auto giant posted fiscal second-quarter fiscal 2023 earnings of $2.30 per share, which lagged the consensus mark of $3.08. The bottom line also declined from the year-ago earnings of $4.09 a share. Consolidated revenues came in at $66,768 million, beating the consensus mark of $63,078 million but contracting 2.5% year over year.
Toyota — currently carrying a Zacks Rank #3 (Hold) — had cash and cash equivalents of ¥6.98 trillion ($48.23 billion) as of Sep 30, 2022. Long-term debt amounted to ¥17.26 trillion ($119.31 billion). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 second quarter increased 22.1% year over year to ¥8.4 trillion ($60.88 billion). Operating profit came in at ¥453.7 billion ($3.28 billion), declining 21.4% year over year.
The Financial Services segment’s net revenues rose 24% from the prior-year quarter to ¥704.2 billion ($5.09 billion). The segment registered an operating income of ¥84.4 billion ($0.61 billion), down almost 50% from the second-quarter fiscal 2022 level.
All Other businesses’ net revenues totaled ¥271 billion ($1.96 billion) in the reported quarter, rising 6.5% from the comparable year-ago period. The unit generated an operating profit of ¥20.3 billion ($0.14 billion), marking a noticeable improvement from a loss of 0.1 billion incurred in the year0ago period.
FY23 Guidance
For fiscal 2023, Toyota projects consolidated vehicle sales of 8.8 million, indicating an increase from 8.23 million units sold in fiscal 2022. Fiscal 2023 sales are expected to total ¥36 trillion, implying an increase from ¥31.4 trillion recorded in fiscal 2022 and higher than the prior view of ¥34.5 trillion. Operating income is projected to be ¥2.4 trillion, indicating a decline of 19.8% year over year.
Pretax profit is estimated at ¥3.34 trillion, down from ¥4 trillion generated in fiscal 2022 but higher than the previous projection of ¥3.27 trillion. R&D expenses are envisioned at ¥1,200 billion, suggesting a rise from ¥1,124 billion spent in fiscal 2022. Capex is forecast at ¥1.54 trillion, signaling an uptick from ¥1.34 trillion spent in fiscal 2022.
Quarterly Releases of Other Legacy Automakers
General Motors (GM - Free Report) reported third-quarter 2022 adjusted earnings of $2.25 per share, surpassing the Zacks Consensus Estimate of $1.89. The bottom line surged 48% from the year-ago quarter's earnings of $1.52 per share. Revenues of $41,889 million beat the Zacks Consensus Estimate of $41,833.3 million. The top line soared 56.4% from the year-ago figure of $26,779 million.
For 2022, General Motors' full-year net income projection was reiterated in the range of $9.6-$11.2 billion. The adjusted EBIT forecast also remained unchanged in the range of $13.0 billion to $15.0 billion. The company continues to expect adjusted EPS in the band of $6.5-$7.5. The adjusted automotive free cash flow of $7 billion to $9 billion was also retained.
(General Motors Q3 Earnings Beat Estimates, Sales Rise Y/Y)
Ford (F - Free Report) reported adjusted earnings of 30 cents per share for third-quarter 2022, missing the Zacks Consensus Estimate of 31 cents. The bottom line declined 41.2% from the year-ago quarter's earnings of 51 cents. The company's consolidated third-quarter revenues came in at $39.4 billion, rising 10% year over year. Ford Automotive revenues were up 12% year over year to $37.2 billion but lagged the Zacks Consensus Estimate of $38.6 billion.
Ford's 2022 projections have been revised. Adjusted EBIT for 2022 is now estimated to be around $11.5 billion instead of the prior guided range of $11.5-$12.5 billion. Adjusted FCF is envisioned in the range of $9.5 billion-$10 billion for 2022, up from the prior range of $5.5-6.5 billion. The company envisions 10% growth in vehicle wholesale volumes for 2022. However, it anticipates headwinds from commodity prices and other inflationary costs to the tune of $9 billion for 2022.
(Ford's Q3 Earnings Miss, Sales Grow, '22 View Revised)