Toyota Motor (TM) Q1 Earnings And Revenues Beat Estimates

Toyota Motor Corporation’s (NYSE:TM) earnings were $4.32 per ADR in first-quarter fiscal 2020 (ended Jun 30, 2019), up from $4.08 in the year-ago quarter. Earnings beat the Zacks Consensus Estimate of $3.89. This Japan-based automaker delivered net income of ¥682.9 billion ($6.2 billion) in the quarter under review, up from ¥657.3 billion ($6 billion) in the year-ago period.

Toyota Motor’s total net revenues rose to $69.5 billion (¥7.65 trillion) from the year-ago quarter’s figure of $67.5 billion (¥7.36 trillion). The figure surpassed the Zacks Consensus Estimate of $67.9 billion.

In first-quarter fiscal 2020, consolidated vehicle sales went up to 2,303,495 units, up 67,364 units from the prior-year quarter’s level. The automaker witnessed a decline in vehicle sales across North America and Other regions (consisting of Central and South America, Oceania, Africa as well as the Middle East). However, sales in Japan, Europe and Asia rose from the year-ago quarter’s tally.

Segmental Results

All figures mentioned below are U.S. GAAP-based.

The Automotive segment’s net revenues rose to ¥6.9 trillion ($62.7 billion) in first-quarter fiscal 2020 from ¥6.6 trillion ($61 billion) in the prior-year quarter. Operating income increased to ¥621.4 billion ($5.6 billion) from the year-ago quarter’s figure of ¥602.5 billion ($5.5 billion).

The Financial Services segment’s net revenues rose to ¥547.7 billion ($4.9 billion) in the quarter under review from ¥516.8 billion ($4.7 billion) in the prior-year quarter. The segment’s operating income was ¥108.2 billion ($983.5 million), up from ¥73.5 billion ($674 million) recorded in the first quarter of fiscal 2019.

All Other businesses’ net revenues increased to ¥370.6 billion ($3.4 billion) in the quarter under review from ¥358 billion ($3.3 billion) in the prior-year quarter. Further, operating income increased to ¥13.7 billion ($124.5 million) from the year-ago quarter’s level of ¥11.4 billion ($104.5 million).

Financial Position

Toyota Motor had cash and cash equivalents of ¥3.8 trillion ($34.5 billion) as of Jun 30, 2019 compared with ¥3.6 trillion ($32.7 billion) as of Mar 31, 2019. Long-term debt amounted to ¥10.5 trillion ($95.4 billion) in the first quarter of fiscal 2020, almost in line with the figure recorded as of Mar 31, 2019.

At the end of the quarter under review, operating cash flow was ¥908 billion ($8.3 billion) compared with ¥824 billion ($7.6 billion) recorded a year ago.

Fiscal Guidance

For fiscal 2020, Toyota expects consolidated vehicle sale of 9 million units, unchanged from the previous forecast. Further, the company projects consolidated net revenues of ¥29.5 trillion ($268 billion), operating income of ¥2.4 trillion ($21.8 billion) and net income of ¥2.15 trillion ($19.5 billion).

Zacks Rank & Stocks to Consider

Currently, Toyota Motor has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Copart, Inc (NASDAQ:CPRT) , CarMax, Inc (NYSE:KMX) and Gentex Corporation (NASDAQ:GNTX) . While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Gentex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 30.1%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 14%.

Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 15.5%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>