KEY TAKEAWAYS
- Toyota Motor American depositary receipts (ADRs) fell Thursday even though the automaker posted better-than-expected first-quarter results on a weak yen and strong hybrid vehicle sales.
- The Japanese company said its Q1 net profit rose 1.7% year-over-year to 1.33 trillion yen ($8.83 billion), while revenue increased 12% to Y11.84 trillion ($78.62 billion).
- The yen has been rising for weeks, which may weigh on overseas sales.
Toyota Motor (TM) American depositary receipts (ADRs) fell Thursday even though the automaker posted better-than-expected first-quarter results on a weak yen and strong hybrid vehicle sales.
The Japanese company said its Q1 net profit rose 1.7% year-over-year to 1.33 trillion yen ($8.83 billion), while revenue increased 12% to Y11.84 trillion ($78.62 billion). Analysts polled by Visible Alpha were looking for net income of Y1.18 trillion on revenue of Y11.65 trillion.
Recalls, ‘Certification Issues’ Affect Japanese Results
The yen has been rising for weeks as investors anticipated Wednesday’s interest-rate increase. Sales volumes were also hit in Japan, the company said, as it dealt with recalls and “certification issues.”
In contrast, sales in North America, Europe, and Asia increased, with Toyota noting that a strong performance in hybrid sales overseas has helped electrified vehicles to 43.2% of its total.
Toyota ADRs fell about 5% to $184.01 at 9:50 a.m. ET Thursday.