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Toyota (TM) Breezes Past Q3 Earnings Estimates, Lifts FY24 View
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Toyota (TM - Free Report) posted third-quarter fiscal 2024 earnings of $6.81 per share, surpassing the Zacks Consensus Estimate of $3.66 and surging from the year-ago earnings of $3.78 a share. Consolidated revenues came in at $81.5 billion, beating the consensus mark of $73.7 billion and rising from $69.16 billion in the year-ago quarter.
Toyota — currently carrying a Zacks Rank #3 (Hold) — had cash and cash equivalents of ¥7.58 trillion ($53.77 billion) as of Dec 31, 2023. Long-term debt was ¥19.25 trillion ($136.6 billion), up from ¥17.1 trillion as of Mar 31, 2023. 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 third quarter increased 24.7% year over year to ¥11.06 trillion ($74.9 billion), outperforming our projection of ¥9.5 trillion. Operating profit came in at ¥1.47 trillion ($9.97 billion), rocketing from ¥818.8 billion generated in the year-ago quarter and breezing past our estimate of ¥869.3 billion.
The Financial Services segment’s net revenues rose 24.3% from the prior-year quarter to ¥922.3 billion ($6.24 billion). The metric outpaced our forecast of ¥771.7 billion. The segment registered an operating income of ¥172 billion ($1.16 billion), up from ¥125 billion from the third-quarter fiscal 2023 levels and surpassed our estimate of ¥114.5 billion.
All Other businesses’ net revenues totaled ¥357.4 billion ($2.42 billion) in the reported quarter, rising 14.4% from the comparable year-ago period and surpassing our projection of ¥333 billion. The unit generated an operating profit of ¥44.1 billion ($298.5 million), marking a remarkable improvement from ¥18.4 billion generated in the year-ago period and topping our estimate of ¥32.9 billion.
TM’s $1.3B Investment in Kentucky
Concurrent with its quarterly release, Toyota announced a $1.3 billion investment in its Kentucky facility, aiming to bolster its electric vehicle (EV) production. This investment is part of Toyota's broader strategy to enhance its electrification efforts and reinforce its commitment to the North American market. The Kentucky facility will focus on assembling a new three-row battery electric SUV specifically for the U.S. market, alongside establishing a battery pack assembly line. The company's investment brings the total investment in the plant to nearly $10 billion.
Toyota's Kentucky facility, operational since 1986, has been integral to the company's North American operations, employing nearly 9,400 team members. With the latest announcement, Toyota continues its stride toward electrification, having announced investments totaling $17 billion since 2021 to support EV manufacturing in the United States.
FY24 Guidance
For fiscal 2024, Toyota projects vehicle sales of 9.45 million units, indicating an increase from 8.82 million units sold in fiscal 2023. Fiscal 2024 sales are expected to total ¥43.5 trillion, up from ¥43 trillion guided earlier and implying an increase from ¥37.15 trillion recorded in fiscal 2023. Operating income is now projected to be ¥4.9 trillion, up from the previous forecast of ¥4.5 trillion and indicating a surge of 79.8% year over year.
Pretax profit is estimated to be ¥6.2 trillion, up from the prior estimate of ¥5.5 trillion and also implying an uptick from ¥3.67 trillion generated in fiscal 2023. R&D expenses are envisioned to be ¥1.24 trillion, flat compared to fiscal 2023 levels. Capex is forecast at ¥1.97 trillion, signaling an uptick from ¥1.6 trillion spent in fiscal 2023.
Quarterly Releases of Other Legacy Automakers
EV behemoth Tesla (TSLA - Free Report) reported its fourth-quarter 2023 results on Jan 24. Fourth-quarter earnings per share of 71 cents missed the Zacks Consensus Estimate of 75 cents and also declined from the year-ago figure of $1.19. Total revenues of $25.17 billion also lagged the consensus mark of $25.94 billion but inched up 3% year over year.Tesla had cash/cash equivalents/investments of $29.1 billion as of Dec 31, 2023, compared with $22.2 billion on Dec 31, 2022. Long-term debt and finance leases, net of the current portion, totaled $2.85 billion, up from $1.6 billion on Dec 31, 2022.
U.S. auto giant General Motors (GM - Free Report) unveiled its quarterly results on Jan 30. Fourth-quarter adjusted earnings of $1.24 per share surpassed the Zacks Consensus Estimate of $1.12. The bottom line, however, decreased from the year-ago quarter’s level of $2.12. Revenues of $42.98 billion beat the Zacks Consensus Estimate of $40.78 billion but decreased from $43.1 billion recorded in the year-ago period. General Motors had cash and cash equivalents of $18.85 billion as of Dec 31, 2023, compared with $19.15 billion as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15.98 billion compared with $15.88 billion as of Dec 31, 2022.
GM’s cross-town rival Ford (F - Free Report) released its quarterly results on Feb 6. The company reported adjusted earnings of 29 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate of 12 cents but fell from 51 cents recorded in the year-ago quarter. The company’s consolidated fourth-quarter revenues came in at $46 billion, up from $44 billion generated in the corresponding quarter of 2023. Ford had cash and cash equivalents of $24.86 billion as of Dec 31, 2023. Long-term debt, excluding Ford Credit, totaled $19.2 billion at the end of the fourth quarter of 2023.
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Toyota (TM) Breezes Past Q3 Earnings Estimates, Lifts FY24 View
Toyota (TM - Free Report) posted third-quarter fiscal 2024 earnings of $6.81 per share, surpassing the Zacks Consensus Estimate of $3.66 and surging from the year-ago earnings of $3.78 a share. Consolidated revenues came in at $81.5 billion, beating the consensus mark of $73.7 billion and rising from $69.16 billion in the year-ago quarter.
Toyota — currently carrying a Zacks Rank #3 (Hold) — had cash and cash equivalents of ¥7.58 trillion ($53.77 billion) as of Dec 31, 2023. Long-term debt was ¥19.25 trillion ($136.6 billion), up from ¥17.1 trillion as of Mar 31, 2023. 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 third quarter increased 24.7% year over year to ¥11.06 trillion ($74.9 billion), outperforming our projection of ¥9.5 trillion. Operating profit came in at ¥1.47 trillion ($9.97 billion), rocketing from ¥818.8 billion generated in the year-ago quarter and breezing past our estimate of ¥869.3 billion.
The Financial Services segment’s net revenues rose 24.3% from the prior-year quarter to ¥922.3 billion ($6.24 billion). The metric outpaced our forecast of ¥771.7 billion. The segment registered an operating income of ¥172 billion ($1.16 billion), up from ¥125 billion from the third-quarter fiscal 2023 levels and surpassed our estimate of ¥114.5 billion.
All Other businesses’ net revenues totaled ¥357.4 billion ($2.42 billion) in the reported quarter, rising 14.4% from the comparable year-ago period and surpassing our projection of ¥333 billion. The unit generated an operating profit of ¥44.1 billion ($298.5 million), marking a remarkable improvement from ¥18.4 billion generated in the year-ago period and topping our estimate of ¥32.9 billion.
TM’s $1.3B Investment in Kentucky
Concurrent with its quarterly release, Toyota announced a $1.3 billion investment in its Kentucky facility, aiming to bolster its electric vehicle (EV) production. This investment is part of Toyota's broader strategy to enhance its electrification efforts and reinforce its commitment to the North American market. The Kentucky facility will focus on assembling a new three-row battery electric SUV specifically for the U.S. market, alongside establishing a battery pack assembly line. The company's investment brings the total investment in the plant to nearly $10 billion.
Toyota's Kentucky facility, operational since 1986, has been integral to the company's North American operations, employing nearly 9,400 team members. With the latest announcement, Toyota continues its stride toward electrification, having announced investments totaling $17 billion since 2021 to support EV manufacturing in the United States.
FY24 Guidance
For fiscal 2024, Toyota projects vehicle sales of 9.45 million units, indicating an increase from 8.82 million units sold in fiscal 2023. Fiscal 2024 sales are expected to total ¥43.5 trillion, up from ¥43 trillion guided earlier and implying an increase from ¥37.15 trillion recorded in fiscal 2023. Operating income is now projected to be ¥4.9 trillion, up from the previous forecast of ¥4.5 trillion and indicating a surge of 79.8% year over year.
Pretax profit is estimated to be ¥6.2 trillion, up from the prior estimate of ¥5.5 trillion and also implying an uptick from ¥3.67 trillion generated in fiscal 2023. R&D expenses are envisioned to be ¥1.24 trillion, flat compared to fiscal 2023 levels. Capex is forecast at ¥1.97 trillion, signaling an uptick from ¥1.6 trillion spent in fiscal 2023.
Quarterly Releases of Other Legacy Automakers
EV behemoth Tesla (TSLA - Free Report) reported its fourth-quarter 2023 results on Jan 24. Fourth-quarter earnings per share of 71 cents missed the Zacks Consensus Estimate of 75 cents and also declined from the year-ago figure of $1.19. Total revenues of $25.17 billion also lagged the consensus mark of $25.94 billion but inched up 3% year over year.Tesla had cash/cash equivalents/investments of $29.1 billion as of Dec 31, 2023, compared with $22.2 billion on Dec 31, 2022. Long-term debt and finance leases, net of the current portion, totaled $2.85 billion, up from $1.6 billion on Dec 31, 2022.
U.S. auto giant General Motors (GM - Free Report) unveiled its quarterly results on Jan 30. Fourth-quarter adjusted earnings of $1.24 per share surpassed the Zacks Consensus Estimate of $1.12. The bottom line, however, decreased from the year-ago quarter’s level of $2.12. Revenues of $42.98 billion beat the Zacks Consensus Estimate of $40.78 billion but decreased from $43.1 billion recorded in the year-ago period. General Motors had cash and cash equivalents of $18.85 billion as of Dec 31, 2023, compared with $19.15 billion as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15.98 billion compared with $15.88 billion as of Dec 31, 2022.
GM’s cross-town rival Ford (F - Free Report) released its quarterly results on Feb 6. The company reported adjusted earnings of 29 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate of 12 cents but fell from 51 cents recorded in the year-ago quarter. The company’s consolidated fourth-quarter revenues came in at $46 billion, up from $44 billion generated in the corresponding quarter of 2023. Ford had cash and cash equivalents of $24.86 billion as of Dec 31, 2023. Long-term debt, excluding Ford Credit, totaled $19.2 billion at the end of the fourth quarter of 2023.