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Toyota (TM) to Report Q3 Earnings: What's in the Offing?
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Toyota (TM - Free Report) is set to release third-quarter fiscal 2022 results on Feb 9. The Zacks Consensus Estimate for earnings is pegged at $3.74 per share on revenues of $67.26 billion.
This Japan auto giant delivered higher-than-anticipated earnings in the last reported quarter on better-than-expected revenues.
Over the trailing four quarters, the company surpassed estimates on all occasions, the average surprise being 47.1%. This is depicted in the graph below:
The Zacks Consensus Estimate for Toyota’s fiscal third-quarter earnings per share has been revised downward by 4 cents to $3.74 in the past 90 days. This compares unfavorably with the year-ago quarter’s earnings of $5.67 per share, indicating a fall of 34.04% year over year. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 13.82%.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Toyota this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below.
Earnings ESP: Toyota has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Toyota’s fiscal third-quarter results will reflect the impact of declining vehicle sales in Japan, the United States and Europe, partly offset by rising sales in China.
For the quarter in discussion, Toyota’s vehicle sales (including Lexus, Daihatsu and Hino) in the Japan market summed 457,788 units, down from the 589,255 units sold in the prior-year quarter. This downside primarily resulted from the parts supply shortage associated with the spread of COVID-19 in Southeast Asia. Toyota’s vehicle sales (including Lexus) in the United States and Europe totaled 474,378 and 205,984 units, respectively, sliding from the 660,716 and 269,663 units sold in the prior-year period amid the pandemic and chip crunch-related woes.
On a somewhat positive note, for the December-end quarter, Toyota’s vehicle sales (including Lexus) in China came in at 543,371 units, up from the 535,066 units sold in the prior-year period, on robust sales of new models including SUVs such as the Highlander and RAV4.
Meanwhile, the company’s elevated capital expenditure on advanced technologies and alternative fuels to develop electric and autonomous vehicles might have further limited the fiscal third-quarter margins.
Stocks With Favorable Combination
Here are a few other stocks in the auto sector lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and currently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. Encouragingly, BWA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 30.9%.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 currently. The company is set to announce quarterly figures on Feb 16.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $597.9 million, respectively. ALSN beat earnings estimates in three of the preceding four quarters and missed once, delivering an average surprise of 3.9%.
Genuine Parts (GPC - Free Report) has an Earnings ESP of +0.31% and carries a Zacks Rank #2 at present. It is scheduled to report earnings results on Feb 17.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 15.9%.
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Toyota (TM) to Report Q3 Earnings: What's in the Offing?
Toyota (TM - Free Report) is set to release third-quarter fiscal 2022 results on Feb 9. The Zacks Consensus Estimate for earnings is pegged at $3.74 per share on revenues of $67.26 billion.
This Japan auto giant delivered higher-than-anticipated earnings in the last reported quarter on better-than-expected revenues.
Over the trailing four quarters, the company surpassed estimates on all occasions, the average surprise being 47.1%. This is depicted in the graph below:
Toyota Motor Corporation Price and EPS Surprise
Toyota Motor Corporation price-eps-surprise | Toyota Motor Corporation Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Toyota’s fiscal third-quarter earnings per share has been revised downward by 4 cents to $3.74 in the past 90 days. This compares unfavorably with the year-ago quarter’s earnings of $5.67 per share, indicating a fall of 34.04% year over year. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 13.82%.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Toyota this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below.
Earnings ESP: Toyota has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Toyota currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
Toyota’s fiscal third-quarter results will reflect the impact of declining vehicle sales in Japan, the United States and Europe, partly offset by rising sales in China.
For the quarter in discussion, Toyota’s vehicle sales (including Lexus, Daihatsu and Hino) in the Japan market summed 457,788 units, down from the 589,255 units sold in the prior-year quarter. This downside primarily resulted from the parts supply shortage associated with the spread of COVID-19 in Southeast Asia. Toyota’s vehicle sales (including Lexus) in the United States and Europe totaled 474,378 and 205,984 units, respectively, sliding from the 660,716 and 269,663 units sold in the prior-year period amid the pandemic and chip crunch-related woes.
On a somewhat positive note, for the December-end quarter, Toyota’s vehicle sales (including Lexus) in China came in at 543,371 units, up from the 535,066 units sold in the prior-year period, on robust sales of new models including SUVs such as the Highlander and RAV4.
Meanwhile, the company’s elevated capital expenditure on advanced technologies and alternative fuels to develop electric and autonomous vehicles might have further limited the fiscal third-quarter margins.
Stocks With Favorable Combination
Here are a few other stocks in the auto sector lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and currently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. Encouragingly, BWA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 30.9%.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 currently. The company is set to announce quarterly figures on Feb 16.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $597.9 million, respectively. ALSN beat earnings estimates in three of the preceding four quarters and missed once, delivering an average surprise of 3.9%.
Genuine Parts (GPC - Free Report) has an Earnings ESP of +0.31% and carries a Zacks Rank #2 at present. It is scheduled to report earnings results on Feb 17.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 15.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.