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Toyota (TM) Beats on Q2 Earnings, Lifts FY22 Pretax Profit View

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Toyota Motor (TM - Free Report) posted fiscal second-quarter 2022 earnings of $4.09 per share, which surpassed the Zacks Consensus Estimate of $2.60 on higher-than-expected revenues. The bottom line also compared favorably with the year-ago earnings of $3.15 a share. Consolidated revenues came in at $68,546 million, beating the consensus mark of $62,068 million. The top-line figure also increased 7.4% year over year.

Toyota Motor Corporation Price, Consensus and EPS Surprise

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 rose 12% year over year to ¥6.9 trillion ($62.53 billion). Operating profit came in at ¥577.6 billion ($5.24 billion), surging 73.8% year over year.

The Financial Services segment’s net revenues increased 6.8% from the prior-year quarter to ¥567.6 billion ($5.15 billion). The segment registered an operating income of ¥168 billion ($1.53 billion), up 10% from the second-quarter fiscal 2021 level.

All Other businesses’ net revenues edged up 8.6% from the year-ago period to ¥254.3 billion ($2.3 billion) for the reported quarter. The unit incurred an operating loss of ¥100 million ($0.9 million) against the year-ago profit of ¥15.3 billion.

Financial Position

Toyota had cash and cash equivalents of ¥4.9 trillion ($44.2 billion) as of Sep 30, 2021. Long-term debt amounted to ¥13.8 trillion ($124.3 billion). At fiscal second quarter-end, operating cash flow was ¥947 billion.

FY22 Revised Guidance

For fiscal 2022, Toyota — whose peers include Honda (HMC - Free Report) , Nissan (NSANY - Free Report) , and Mazda (MZDAY - Free Report) — now projects fiscal 2022 consolidated vehicle sales of 10.3 million, down from the previous estimate of 10.5 million units. The revised projection indicates an increase from 9.9 million units sold in fiscal 2021. Sales are expected to total ¥30 trillion, unchanged from the prior view. Operating income is projected at ¥2.8 trillion, up from the previous guidance of ¥2.5 trillion, indicating growth of 27.4% year over year. Pretax profit is estimated at ¥3.4 trillion, up from the previous forecast of ¥3.1 trillion. R&D expenses are envisioned at ¥1,180 billion, suggesting a rise from the previous projection of ¥1,160 billion and ¥1,090 billion spent in fiscal 2021. Capex is forecast at ¥1.35 trillion, indicating an increase from ¥1.29 trillion spent in fiscal 2021. Toyota currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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