Why Toyota Motor Shares Are Surging Higher Premarket Today

Toyota Motor Corp TM shares are trading higher after it reported results for its third quarter and nine months of FY24.

Sales revenue rose to ¥12.04 trillion from ¥9.75 trillion a year ago in the third quarter.

In the nine months ending FY24, total retail vehicle sales increased 8.6% to 8.564 million units. Vehicle sales volumes were 7.3 million units (vs. 6.5 million units a year ago).

Toyota and Lexus vehicle sales rose 9.7% Y/Y to 7.9 million, and EV sales increased 41.4% Y/Y to 2.8 million.

Related: Toyota Exec Swears It’s ‘Actually Not’ Anti-EV But Doesn’t See Electric Path As ‘Single Golden Bullet’ Toward Carbon Neutrality

The company reported production of 11.52 million vehicles in FY23, marking a third consecutive annual increase, up by 8.6% year over year.

The operating income for the quarter increased to ¥1.68 trillion (from ¥957 billion in the prior-year quarter). Marketing initiatives positively impacted the operating income by ¥700 billion, mainly on improved volume & model mix.

Net income for the quarter was ¥1.36 trillion versus ¥728 billion last year. 

The company held ¥7.58 trillion in cash and equivalents as of December 31, 2023.

FY24 Outlook: The automaker raised its outlook for revenue to ¥43.5 trillion (from ¥43.0 trillion) and operating profit to ¥4.9 trillion (from ¥4.5 trillion), with cost reduction efforts to increase the operating income by ¥100 billion. 

Toyota reduced its total sales volume outlook to 9.450 million (from 9.600 million earlier), expecting lower sales volume in Japan, mainly due to the suspension of Daihatsu shipments.

Price Action: TM shares are up 3.55% at $210.23 premarket on the last check Tuesday.

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