Home News Toyota Stock Hits New High on Beating Earnings and $1.3 Billion Investment in Hybrid and Electric Vehicle Plant

Toyota Stock Hits New High on Beating Earnings and $1.3 Billion Investment in Hybrid and Electric Vehicle Plant

by SuperiorInvest

Key takeaways

  • Toyota shares hit a record high on Tuesday after the world’s best-selling automaker reported results for its fiscal third quarter that beat expectations.
  • The strong performance led Toyota to raise its full-year operating profit guidance by nearly 9%.
  • Toyota also announced a $1.3 billion investment in a Kentucky plant to make hybrid and fully electric vehicles.

Shares of Toyota Motor Corp. (TM) rose to a record high on Tuesday after the Japanese automaker reported better-than-expected results and announced a $1.3 billion investment in a Kentucky plant to make all-electric vehicles. and hybrids.

Toyota reported a net profit of 3.95 trillion yen ($26.7 billion) in its fiscal third quarter, up from 1.9 trillion yen ($12.8 billion) a year earlier and above forecasts. The strong performance led the world’s best-selling automaker to raise its full-year guidance on operating profit to 4.9 billion yen (about $33 million) from 4.5 billion yen (about $30.4 million). ), an increase of almost 9%.

Toyota also delivered 9% more vehicles in its fiscal third quarter compared to the same period a year ago. Toyota saw strong year-over-year growth in the Japanese, North American and European market segments. International markets were especially beneficial to Toyota’s results due to a weaker yen.

Meanwhile, total electric vehicle (EV) sales increased by 41%. That growth made electric vehicles a larger part of Toyota’s sales, accounting for nearly 36% of sales, up from 28% of sales the previous year.

That’s good news for Toyota, which issued a safety recall for more than 1 million Toyota and Lexus vehicles in December due to a faulty sensor that could prevent air bags from deploying. Despite the magnitude of the recall, the news did little to shake Toyota shares in the wake of the company’s record global sales in the six months from April to September 2023.

Toyota shares ended Tuesday up 7.8% at $218.86 per share. They have gained more than 51% over the past year.

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