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Toyota (TM) Q3 Earnings Surpass Estimates, Fall 25% Y/Y
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Toyota (TM - Free Report) posted third-quarter fiscal 2023 earnings of $3.78 per share, which surpassed the consensus mark of $3.66. The bottom line, however, declined from the year-ago earnings of $5.03 a share. Consolidated revenues came in at $69,161 million, beating the consensus mark of $68,126 million and rising from $68,530 million in the year-ago reported figure.
The Automotive segment’s net revenues for the fiscal third quarter increased 25.4% year over year to ¥8.87 trillion ($62.81 billion). Operating profit came in at ¥818.8 billion ($5.79 billion), surging 37.5% year over year.
The Financial Services segment’s net revenues rose 26% from the prior-year quarter to ¥741.7 billion ($5.25 billion). The segment registered an operating income of ¥125 billion ($0.88 billion), down almost 34% from the third-quarter fiscal 2022 level.
All Other businesses’ net revenues totaled ¥312.2 billion ($2.21 billion) in the reported quarter, rising 16.9% from the comparable year-ago period. The unit generated an operating profit of ¥18.4 billion ($0.13 billion), marking a noticeable improvement from a loss of ¥0.1 billion incurred in the year-ago period.
FY23 Guidance Reiterated
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. Operating income is projected to be ¥2.4 trillion, indicating a decline of 19.9% year over year.
Pretax profit is estimated at ¥3.34 trillion, down from ¥4 trillion generated in fiscal 2022. R&D expenses are envisioned to be ¥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 fourth-quarter 2022 adjusted earnings of $2.12 per share, surpassing the Zacks Consensus Estimate of $1.68. Higher-than-expected revenues and profit from the North America segment led to the outperformance. The bottom line also surged from the year-ago quarter’s earnings of $1.35 per share. Revenues of $43,108 million beat the Zacks Consensus Estimate of $41,313 million. The top line soared 28.3% from the year-ago figure of $33,584 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $3,799 million, higher than $2,839 million in the prior-year quarter.
General Motors had cash and cash equivalents of $19,153 million as of Dec 31, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $15,885 million compared with $16,355 million as of Dec 31, 2021. General Motors’ automotive cash provided by operating activities amounted to $7,488 million during the quarter under review, down 20.2% year over year. The company recorded an adjusted automotive free cash flow of $4,460 million in fourth-quarter 2022, down 30.3% year over year. (General Motors Q4 Earnings Beat on GMNA Unit Strength)
Ford (F - Free Report) reported adjusted earnings of 51 cents per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of 60 cents. Lower-than-expected profits from all but the International Markets Group unit led to this downslide. The bottom line improved 96.2% from the year-ago quarter’s earnings of 26 cents. The company’s consolidated fourth-quarter revenues came in at $44 billion, rising 17% year over year. Revenues from the Ford Automotive segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion.
Ford reported an adjusted FCF of $2.4 billion during the quarter. It had cash and cash equivalents of $25,134 million as of Dec 31, 2022, compared with $20,540 million on Dec 31, 2021. Long-term debt, excluding Ford Credit, totaled $19.2 billion at the end of 2022, up from $17.2 billion as of Dec 31, 2021. Adjusted EBIT for 2023 is estimated to be in the range of $9 billion-$11 billion. Adjusted FCF is envisioned to be $6 billion. Along with the regular first-quarter dividend of 15 cents per, Ford declared a supplemental dividend of 65 cents per share, aided by robust FCF. (Ford Q4 Earnings Miss Estimates, Sales Grow 17% Y/Y)
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Toyota (TM) Q3 Earnings Surpass Estimates, Fall 25% Y/Y
Toyota (TM - Free Report) posted third-quarter fiscal 2023 earnings of $3.78 per share, which surpassed the consensus mark of $3.66. The bottom line, however, declined from the year-ago earnings of $5.03 a share. Consolidated revenues came in at $69,161 million, beating the consensus mark of $68,126 million and rising from $68,530 million in the year-ago reported figure.
Toyota — currently carrying a Zacks Rank #3 (Hold) — had cash and cash equivalents of ¥6.02 trillion ($45.9 billion) as of Dec 31, 2022. Long-term debt was ¥16.56 trillion ($126.3 billion). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Results
The Automotive segment’s net revenues for the fiscal third quarter increased 25.4% year over year to ¥8.87 trillion ($62.81 billion). Operating profit came in at ¥818.8 billion ($5.79 billion), surging 37.5% year over year.
The Financial Services segment’s net revenues rose 26% from the prior-year quarter to ¥741.7 billion ($5.25 billion). The segment registered an operating income of ¥125 billion ($0.88 billion), down almost 34% from the third-quarter fiscal 2022 level.
All Other businesses’ net revenues totaled ¥312.2 billion ($2.21 billion) in the reported quarter, rising 16.9% from the comparable year-ago period. The unit generated an operating profit of ¥18.4 billion ($0.13 billion), marking a noticeable improvement from a loss of ¥0.1 billion incurred in the year-ago period.
FY23 Guidance Reiterated
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. Operating income is projected to be ¥2.4 trillion, indicating a decline of 19.9% year over year.
Pretax profit is estimated at ¥3.34 trillion, down from ¥4 trillion generated in fiscal 2022. R&D expenses are envisioned to be ¥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 fourth-quarter 2022 adjusted earnings of $2.12 per share, surpassing the Zacks Consensus Estimate of $1.68. Higher-than-expected revenues and profit from the North America segment led to the outperformance. The bottom line also surged from the year-ago quarter’s earnings of $1.35 per share. Revenues of $43,108 million beat the Zacks Consensus Estimate of $41,313 million. The top line soared 28.3% from the year-ago figure of $33,584 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $3,799 million, higher than $2,839 million in the prior-year quarter.
General Motors had cash and cash equivalents of $19,153 million as of Dec 31, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $15,885 million compared with $16,355 million as of Dec 31, 2021. General Motors’ automotive cash provided by operating activities amounted to $7,488 million during the quarter under review, down 20.2% year over year. The company recorded an adjusted automotive free cash flow of $4,460 million in fourth-quarter 2022, down 30.3% year over year. (General Motors Q4 Earnings Beat on GMNA Unit Strength)
Ford (F - Free Report) reported adjusted earnings of 51 cents per share in fourth-quarter 2022, missing the Zacks Consensus Estimate of 60 cents. Lower-than-expected profits from all but the International Markets Group unit led to this downslide. The bottom line improved 96.2% from the year-ago quarter’s earnings of 26 cents. The company’s consolidated fourth-quarter revenues came in at $44 billion, rising 17% year over year. Revenues from the Ford Automotive segment increased 18% to $41.8 billion and surpassed the Zacks Consensus Estimate of $39.4 billion.
Ford reported an adjusted FCF of $2.4 billion during the quarter. It had cash and cash equivalents of $25,134 million as of Dec 31, 2022, compared with $20,540 million on Dec 31, 2021. Long-term debt, excluding Ford Credit, totaled $19.2 billion at the end of 2022, up from $17.2 billion as of Dec 31, 2021. Adjusted EBIT for 2023 is estimated to be in the range of $9 billion-$11 billion. Adjusted FCF is envisioned to be $6 billion. Along with the regular first-quarter dividend of 15 cents per, Ford declared a supplemental dividend of 65 cents per share, aided by robust FCF. (Ford Q4 Earnings Miss Estimates, Sales Grow 17% Y/Y)