Toyota Shares Decline 5% Since Q3 Earnings Beat Estimates

Shares of Toyota TM 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 QuoteSegmental 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 GuidanceFor 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 PicksToyota carries a Zacks Rank #4 (Sell) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Allison Transmission Holdings, Inc. ALSN. 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks