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Toyota Shares Decline 5% Since Q3 Earnings Beat Estimates
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Shares of Toyota (TM - Free Report) have lost 5.3% since it posted third-quarter fiscal 2025 results. It reported earnings per share (EPS) of $9.98, which surpassed the Zacks Consensus Estimate of $4.36 and rose from the year-ago quarter’s earnings of $6.81. Consolidated revenues came in at $81.35 billion, which beat the consensus mark of $78.36 billion but declined from $81.54 billion in the year-ago quarter.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Toyota had cash and cash equivalents of ¥9.41 trillion ($59.8 billion) as of Dec. 31, 2024. Long-term debt was ¥21.1 trillion ($134.4 billion), up from ¥21.15 trillion as of March 31, 2024.
Toyota Motor Corporation Price, Consensus and EPS Surprise
The Automotive segment’s net revenues for the fiscal third quarter increased 1.7% year over year to ¥11.25 trillion ($73.8 billion), surpassing our estimates of ¥10.71 trillion. Operating profit came in at ¥1 trillion ($6.61 billion), which declined 31.7% from the year-ago period but exceeded our estimate of ¥912.9 billion.
The Financial Services segment’s net revenues rose 10.9% from the prior-year quarter to ¥1.02 trillion ($6.71 billion). The metric outpaced our forecast of ¥933.5 billion. The segment registered an operating income of ¥163.7 billion ($1.07 billion), which fell 4.8% from the third-quarter fiscal 2024 but surpassed our estimate of ¥120.1 billion.
All Other businesses’ net revenues totaled ¥393 billion ($2.58 billion) in the reported quarter, which increased 10% year over year and topped our projection of ¥377.9 billion. The unit generated an operating profit of ¥50.5 billion ($331.5 million), which rose 14.5% year over year and topped our estimate of ¥34.4 billion.
Toyota’s FY25 Guidance
For fiscal 2025, Toyota projects total retail vehicle sales of 10.85 million units, indicating a decrease from 11.09 million units sold in fiscal 2024. Fiscal 2025 sales are expected to total ¥47 trillion compared with ¥45 trillion recorded in fiscal 2024. Operating income is projected to be ¥4.7 trillion, indicating a contraction of 12.2% year over year.
Pretax profit is estimated to be ¥6.18 trillion, implying a decline from ¥6.96 trillion generated in fiscal 2024. R&D expenses are envisioned to be ¥1.3 trillion compared with ¥1.2 trillion spent in fiscal 2024. Capex is forecasted to be ¥2.15 trillion compared with ¥2.01 trillion spent in fiscal 2024.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2025 sales and earnings indicates year-over-year growth of 6.67% and 12.17%, respectively. EPS estimates for 2025 have improved 3 cents in the past 30 days.
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Toyota Shares Decline 5% Since Q3 Earnings Beat Estimates
Shares of Toyota (TM - Free Report) have lost 5.3% since it posted third-quarter fiscal 2025 results. It reported earnings per share (EPS) of $9.98, which surpassed the Zacks Consensus Estimate of $4.36 and rose from the year-ago quarter’s earnings of $6.81. Consolidated revenues came in at $81.35 billion, which beat the consensus mark of $78.36 billion but declined from $81.54 billion in the year-ago quarter.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Toyota had cash and cash equivalents of ¥9.41 trillion ($59.8 billion) as of Dec. 31, 2024. Long-term debt was ¥21.1 trillion ($134.4 billion), up from ¥21.15 trillion as of March 31, 2024.
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 1.7% year over year to ¥11.25 trillion ($73.8 billion), surpassing our estimates of ¥10.71 trillion. Operating profit came in at ¥1 trillion ($6.61 billion), which declined 31.7% from the year-ago period but exceeded our estimate of ¥912.9 billion.
The Financial Services segment’s net revenues rose 10.9% from the prior-year quarter to ¥1.02 trillion ($6.71 billion). The metric outpaced our forecast of ¥933.5 billion. The segment registered an operating income of ¥163.7 billion ($1.07 billion), which fell 4.8% from the third-quarter fiscal 2024 but surpassed our estimate of ¥120.1 billion.
All Other businesses’ net revenues totaled ¥393 billion ($2.58 billion) in the reported quarter, which increased 10% year over year and topped our projection of ¥377.9 billion. The unit generated an operating profit of ¥50.5 billion ($331.5 million), which rose 14.5% year over year and topped our estimate of ¥34.4 billion.
Toyota’s FY25 Guidance
For fiscal 2025, Toyota projects total retail vehicle sales of 10.85 million units, indicating a decrease from 11.09 million units sold in fiscal 2024. Fiscal 2025 sales are expected to total ¥47 trillion compared with ¥45 trillion recorded in fiscal 2024. Operating income is projected to be ¥4.7 trillion, indicating a contraction of 12.2% year over year.
Pretax profit is estimated to be ¥6.18 trillion, implying a decline from ¥6.96 trillion generated in fiscal 2024. R&D expenses are envisioned to be ¥1.3 trillion compared with ¥1.2 trillion spent in fiscal 2024. Capex is forecasted to be ¥2.15 trillion compared with ¥2.01 trillion spent in fiscal 2024.
TM’s Zacks Rank & Key Picks
Toyota carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Dana Incorporated (DAN - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, ALSN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2025 sales and earnings indicates year-over-year growth of 6.67% and 12.17%, respectively. EPS estimates for 2025 have improved 3 cents in the past 30 days.