Toyota (TM) Q1 Earnings & Sales Surpass Estimates, Down Y/Y
Toyota Motor TM posted fiscal first-quarter 2021 earnings of $1.06 per share, as against the Zacks Consensus Estimate of a loss of $1.78. However, the bottom line compares unfavorably with the year-ago earnings of $4.32 a share.
Consolidated revenues came in at $42,778 million, surpassing the consensus mark of $36,517 million. Nonetheless, the top-line figure plunged 38.5% year over year. Depressed demand for vehicles and weak consumer sentiment amid the COVID-19 pandemic resulted in dismal performance of this Japan-based auto biggie.
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 plummeted 42.8% year over year to ¥3.98 trillion ($36.96 billion) in first-quarter fiscal 2021. Operating loss in the quarter was ¥86.5 billion ($804 million), as against the year-ago profit of ¥617.8 billion.
The Financial Services segment’s net revenues declined 2.6% from the prior-year quarter to ¥534.9 billion ($4.96 billion). The segment registered an operating income of ¥92.2 billion ($857 million) compared with the ¥109.7 billion recorded in first-quarter fiscal 2020.
All Other businesses’ net revenues slipped 44.3% from the year-ago period to ¥206 billion ($1.91 billion) in the reported quarter. Further, the operating income declined 34.5% year over year to ¥9.3 billion ($86.4 million).
Financial Position
Toyota had cash and cash equivalents of ¥6.8 trillion ($63.1 billion) as of Jun 30, 2020. Long-term debt amounted to ¥12.6 trillion ($116.6 billion). At the end of the fiscal first quarter, operating cash flow was ¥673.2 million, up 3.4% year over year.
Fiscal 2021 Guidance
For fiscal 2021, Toyota expects consolidated vehicle sales of 7.2 million units, suggesting a decline from the fiscal 2020 levels. The auto giant expects the pandemic to hurt earnings and sales in the fiscal year.
Toyota expects operating income to slump 79.5% year over year to ¥500 billion. Sales are expected to total ¥24 billion, calling for a 19.8% decline from the fiscal 2020 levels. Despite the gloomy scenario, and bleak profit and sales forecast, the company intends to spend more than ¥1.1 trillion in R&D expenses, which suggests almost no change from the prior-fiscal levels.
Zacks Rank & Stocks to Consider
Toyota currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the auto sector include Sonic Automotive Inc. SAH, AutoNation AN and LCI Industries LCII, each sporting a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic Automotive have appreciated 28.1%, year to date, compared with the industry’s rise of 9.6%.
Shares of AutoNation have rallied 11.6%, year to date, compared with the industry’s gain of 9.6%.
Shares of LCI Industries have appreciated 18.9%, year to date, as against the industry’s decline of 4.8%.
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