Toyota Beats FY15 Earnings & Revenues; Guides FY16
Toyota Motor Corporation (TM - Analyst Report) posted consolidated net income of ¥446.4 billion ($3.75 billion) in fourth-quarter fiscal 2015, higher than ¥297 billion ($2.88 billion) posted in the year-ago quarter.
Consolidated revenues in the quarter increased 8.4% year over year to ¥7.17 trillion ($59.82 billion). Revenues also surpassed the Zacks Consensus Estimate of $56.69 billion.
Unit sales went down 4.3% year over year to 2.23 million vehicles globally. Unit sales rose 7.1% to 607,000 vehicles in North America and 5.2% to 225,000 vehicles in Europe. However, sales declined 13.5% to 626,933 units in Japan, 11.5% to 361,000 units in Asia and 1.2% to 414,000 units in other regions (Central and South America, Oceania, Africa and the Middle East).
Operating income increased to ¥635.7 billion ($5.34 billion) from ¥436.1 billion ($4.23 billion) a year ago.
Fiscal 2015 Results
Toyota recorded earnings of ¥687.66 ($12.50) per share in fiscal 2015, improving from ¥574.92 ($11.50) per share in fiscal 2014. Earnings per ADR also surpassed the Zacks Consensus Estimate of $11.69. Net income increased to ¥2.17 trillion ($19.7 billion) from¥1.82 trillion ($18.2 billion) in fiscal 2014.
Consolidated revenues were ¥27.23 trillion ($247.5 billion) in fiscal 2015 compared with ¥25.69 trillion ($256.9 billion) in fiscal 2014. Revenues also surpassed the Zacks Consensus Estimate of $224.43 billion.
Segment Results
The Automotive segment’s revenues rose 7.5% to ¥6.51 trillion ($54.66 billion) in the quarter, while the operating income improved 69.4% to ¥533.7 billion ($4.48 billion).
The Financial Services segment’s revenues went up 21% to ¥446 billion ($3.75 billion), while the operating income fell 18.6% to ¥76.7 billion ($644.54 million).
All Other businesses’ revenues climbed 9.5% to ¥399.4 billion ($3.36 billion). However, operating income fell 3.5% to ¥22.4 billion ($188.24 million).
Financial Position
Toyota had cash and cash equivalents of ¥2.28 trillion ($20.8 billion) as of Mar 31, 2015, compared with ¥2.04 trillion ($20.4 billion) as of Mar 31, 2014. Total debt amounted to ¥18.98 trillion ($172.5 billion) as of Mar 31, 2015 compared with ¥16.33 trillion ($163.3 billion) as of Mar 31, 2014.
In fiscal 2015, operating net cash flow was ¥3.69 trillion ($33.51 billion) compared with ¥3.65 trillion ($36.46 billion) recorded in the year-ago period.
Fiscal 2016 Guidance
Toyota revealed its consolidated revenue guidance of ¥27.5 trillion ($239.1 billion) for fiscal 2016. The revenue guidance reflects a 1% improvement from fiscal 2015.
Operating income guidance is ¥2.8 trillion ($24.3 billion). The guidance implies a 1.8% year-over-year increase.
Net earnings are expected to be around ¥2.25 trillion ($19.6 billion) or ¥715.01 per share ($12.43 per ADR). The net income guidance reflects expectations of a 3.5% improvement over fiscal 2015.
Consolidated vehicle sales for fiscal 2016 are expected to be about 8.9 million units, down from nearly 8.97 million vehicles sold in fiscal 2015.
Currently, Toyota carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include American Axle & Manufacturing Holdings Inc. (AXL - Analyst Report), PACCAR Inc. (PCAR - Analyst Report) and General Motors Company (GM - Analyst Report). American Axle sports a Zacks Rank #1 (Strong Buy), while PACCAR and General Motors carry a Zacks Rank #2 (Buy).
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What did PCAR do to get it a strong buy? It's over-valued, insiders =have been selling like the shares have ebola. I am long, love the company, (cmon, Peterbilt? be still my heart) but wonder about what the rest of the year will look like for PCAR.