Toyota Earnings Discussion

As some of you may know, Toyota will be reporting 2nd quarter earnings on 8/1.

So far, it's been a miserable quarter for auto manufactures. Tesla, Ford, and Stellantis all missed on earnings expectations, and their stock has plummeted. GM had a decent quarter, but got crushed in China for the second quarter in a row, so their stock slumped, as well.

Will Toyota be the exception to the rule? They posted some impressive June sales numbers. The Street expects a 43% decline in earnings per share, so the bar is set pretty low. How much do you think the Tundra recall headwinds will affect investor confidence?

FYI, I dabble in stock options around earnings seasons. Normally, I'd be bearish on Toyota in light of the performance of the other auto manufactures. But, I'm struggling with this one because of the mixed signals.

Thoughts?

 

IIRC summer is the worst season for almost all sales, besides Corona and beach umbrellas.

 

I half ass watch the markets. Being retired, I don't hunt for the big returns.

With that said, the economy may be pretty rough, but I am not seeing that in my accounts.

Since you mentioned it, Ill probably watch the earnings report now.

 

Ass continues to generate profit QoQ since recorded history became a thing.

Spraynard is...



... all in.

 

Actually, the economy is doing well, despite the persistent inflation and higher than usual interest rates. The GDP was up 2.8% in the 2nd quarter, which is quite remarkable under the circumstances.

 

The local Yota stealership has 92 Tundras/Sequoias (4 of the 92) on the lot right now. They aren't moving much either. There are discounts on them now... Due to the hurricane, they're being "generous" and offering $1k for total loss vehicles + $1k "customer loyalty"

 

I’m watching and may pick some shares up as a long term play. I generally don’t believe in timing the market. I prefer to buy solid companies and hold them. However, the market doesn’t like uncertainty on major issues. Notice the recent pull back since our president stepped out of the race. The fact that Toyota has committed to replace the affected motors confirms that they have not changed their business philosophy to bolster profits. They are still doing the right thing for the right reason. All the press on this will bring new customers in the door. I think Toyota is a strong buy if you decide to invest in this industry.

Edit: just read about class action lawsuit related to safety testing procedures that are in question. This too will impact stock price. However, this will get resolved and be a blip on the long term performance of the company. I still say strong buy.