Toyota Motor Corporation TM is slated to release first-quarter fiscal 2025 results on Aug 1, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $4.01 per share and $72.48 billion, respectively.
For the fiscal first quarter, the consensus estimate for TM’s earnings per share has moved down by $1.30 in the past 90 days. Its bottom-line estimates imply a decline of 43.12% from the year-ago reported number.
The Zacks Consensus Estimate for revenues suggests a year-over-year decline of 5.69%.
TM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 83.30%. This is depicted in the graph below:
Toyota Motor Corporation Price and EPS Surprise
Toyota Motor Corporation price-eps-surprise | Toyota Motor Corporation Quote
Q4 Highlights
In fourth-quarter fiscal 2024, Toyota posted adjusted quarterly earnings of $4.99 per share, surpassing the Zacks Consensus Estimate of $2.91. This compares to an adjusted earnings of $3.07 per share reported a year ago. Toyota posted revenues of $74.5 billion, outpacing the Zacks Consensus Estimate of $67.2 billion and rising from $73.2 billion in the year-ago quarter.
Things to Note
In the second quarter, Toyota sold 621,549 vehicles in the United States, up 9.2% year over year. TM sold 247,347 electric vehicles, up 63.1% year over year. It also sold 67,544 vehicles in Canada in the second quarter, up 7.3% year over year. The company sold a total of 4,968 Zero-Emission Vehicles, including electric vehicles, plug-in hybrid vehicles and fuel-cell electric vehicles in Canada, up 23.2% year over year. Higher sales volume is likely to have boosted the company’s top-line growth in the fiscal first quarter.
However, Toyota expects a negative impact from labor cost inflation of more than ¥205 billion on operating profits in fiscal 2025. High R&D expenses on advanced technologies and alternative fuels for the development of electric and autonomous vehicles are likely to limit the near-term margins. TM expects R&D expenses for fiscal 2025 to adversely impact operating income by ¥100 billion.
High expected costs and expenses in fiscal 2025 are likely to have hurt Toyota’s margins in the fiscal first quarter.
Here's a sneak peek at the firm’s key revenue projections for the to-be-reported quarter.
Our estimate for quarterly revenues from Japan, which has the highest contribution to the company’s revenues, is pegged at ¥4.90 billion, suggesting a decline from ¥5.1 billion recorded in the prior-year quarter. Our estimate for revenues from North America is pegged at ¥4.17 billion, indicating a rise from ¥4.09 billion recorded in the year-ago quarter.
Our estimate for revenues from Europe is pegged at ¥1.32 billion, indicating a rise from ¥1.30 billion recorded in the year-ago period. Our estimate for quarterly revenues from Asia is pegged at ¥2.03 billion, suggesting a rise from ¥1.96 billion reported in the year-ago quarter. Our estimate for revenues from Other is pegged at ¥1.03 billion, indicating a rise from ¥1.02 billion recorded in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Toyota this time around, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
Earnings ESP: TM has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line 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 #3.
Earnings Whispers for Other Auto Stocks
Lucid Group, Inc. LCID has an Earnings ESP of +1.85% and a Zacks Rank #4 (Sell) at present. It is scheduled to post second-quarter earnings on Aug 5. The Zacks Consensus Estimate is pegged at a loss of 27 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
LCID missed estimates in each of the trailing four quarters, the average negative surprise being 10.39%.
Rivian Automotive, Inc. RIVN has an Earnings ESP of -7.93% and a Zacks Rank #2 at present. The company is slated to post second-quarter 2024 earnings on Aug 6. The Zacks Consensus Estimate is pegged at a loss of $1.14 per share.
RIVN surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 8.19%.
Blink Charging Co. BLNK has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The company is scheduled to post second-quarter 2024 earnings on Aug 7. The Zacks Consensus Estimate is pegged at a loss of 14 cents per share.
BLNK surpassed earnings estimates in each of the trailing four quarters, the average surprise being 36.76%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
