Earnings Alerts

Toyota Motor (7203) Earnings Surpass Estimates Despite Falling Short on FY Operating Income Forecast

• Toyota’s forecasted operating income is 4.30 trillion yen, which is less than the estimated 5.34 trillion yen

• Toyota projects a net income of 3.57 trillion yen, less than the expected 4.68 trillion yen

• The company anticipates net sales of 46.00 trillion yen, slightly below the estimate of 46.11 trillion yen

• The dividend for the fourth quarter was 45.00 yen, which is up from 35.00 yen year over year

• The fourth quarter had an operating income of 1.11 trillion yen, representing a 77% increase from the previous year, and higher than the 879.6 billion yen forecast

• The net income for the quarter reached 997.69 billion yen, a year-over-year surge of 81%, outpacing the predicted 754.44 billion yen

• Fourth quarter net sales came in at 11.07 trillion yen, reflecting a 14% increase year over year, and surpassing the estimate of 10.02 trillion yen

• On the day, shares fell 3.1% to 3,487 yen with a significant 22.4 million shares traded

• The stock has 15 buy ratings, 8 hold ratings and 1 sell rating

• All comparisons are against the company’s previous results as reported in their original disclosures


Toyota Motor on Smartkarma

On Smartkarma, independent analyst Sumeet Singh explores Toyota Motor‘s cross-shareholding strategy, suggesting a significant unwinding potential. Singh delves into Toyota’s recent stake sales in companies like Denso, KDDI, and Harmonic Drive, kickstarting the process. With combined disposable stakes exceeding US$26 billion across 60 listed companies, Singh identifies potential sell-down candidates in this detailed analysis.

Another analyst, David Blennerhassett, shares a bullish outlook on Toyota’s move to sell a portion of its Denso holdings. Expected to sell about 10% by year-end, worth approximately $4.7 billion, this strategic shift within the Toyota Group signifies a lucrative opportunity for investors. Blennerhassett’s insights highlight the positive implications of this proposed reduction in Denso’s holdings, showcasing a favorable stance towards this trading opportunity.


A look at Toyota Motor Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth5
Resilience2
Momentum5
OVERALL SMART SCORE3.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts utilizing the Smartkarma Smart Scores for Toyota Motor Corporation predict a bright long-term outlook for the company. With a strong emphasis on growth and momentum, Toyota Motor is positioned to thrive in the market. The company’s high scores in Growth (5) and Momentum (5) indicate a favorable trajectory for expansion and sustained performance.

Although facing some challenges in terms of Value (3), Dividend (3), and Resilience (2), Toyota Motor‘s overall outlook remains positive. The company’s diversified business model, which includes manufacturing, sales, leasing, and finance services, along with its innovation in intelligent transportation systems, positions it well for continued success in the future.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars