Japanese automotive major Toyota (NYSE:TM) reported a nearly 80% jump in its Q4 top line as the company benefitted from robust demand for hybrids and a weak Yen (FX:USD-JPY). However, it expects a drop in profits for the full year owing to higher costs.
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TM’s Bumper Results
For the full year, Toyota’s top line rose by 21.4% to ¥45 trillion, and net income jumped by around 102% to ¥4.94 trillion. In Q4, the company’s top line rose by around 14% to ¥11.1 trillion and net income jumped by 80% to ¥997.6 billion.
This performance was driven by a nearly 7% jump in vehicle shipments for the year as well as the company’s cost reduction efforts. Importantly, Toyota clocked nearly 30% higher sales in North America and 32.9% higher sales in Europe despite tough macroeconomic conditions and challenging times for the automotive industry globally.
Toyota’s Outlook Disappoints
For Fiscal year 2025, Toyota expects a 2% increase in its top line. However, it anticipates that there will be a nearly 27.8% contraction in its bottom line, which points to cost challenges for the company. Importantly, Toyota plans to repurchase shares worth ¥1 trillion by the end of FY2025.
Is TM Stock a Buy, Sell, or a Hold?
Toyota’s share price has rallied by nearly 68% over the past year. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average TM price target of $228.96. However, analysts’ views on the company could see a revision following today’s earnings report.
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