The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Toyota Motor met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted.
Gross margins grew, operating margins improved, and net margins dropped.
Toyota Motor notched revenue of $63.23 billion. The nine analysts polled by S&P Capital IQ anticipated sales of $63.61 billion. Sales were 9.8% higher than the prior-year quarter's $57.60 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.34. The two earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.34 for Q3 were 8.1% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 12.5%, 10 basis points better than the prior-year quarter. Operating margin was 3.1%, 100 basis points better than the prior-year quarter. Net margin was 1.7%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $73.06 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $240.71 billion. The average EPS estimate is $1.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,380 members out of 3,710 rating the stock outperform, and 330 members rating it underperform. Among 883 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 841 give Toyota Motor a green thumbs-up, and 42 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Toyota Motor is outperform, with an average price target of $101.92.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.