Toyota Share Price Down Despite Record Profits
Toyota Motor Corp., the biggest car manufacturer in the world, released a statement yesterday reporting that its profits have jumped to a record high over the last financial quarter. The results were linked to the rising popularity of SUVs in the U.S. which neutralised the negative impact of decreasing demand in Japan.In Q1 the net income of the company reached 587.8 billion yen ($5.7 billion), well above the analysts’ forecast of 497.3 billion yen. The company also kept its projection for a profit of 1.78 trillion yen for this financial year.
The operating profit generated in North America reached 149.7 billion yen, an increase of 45%, while the company’s global revenue increased by 2.2% to 6.39 trillion yen.
Koji Endo, an auto analyst at Advanced Research Japan said, “I expect Toyota to keep this pace for the fiscal year and maybe even revise its forecasts mid-year.”
However, on Tuesday Toyota Motor Corp.’s shares were 0.88% down and closed at 5,989 yen per share. On the other hand, the median target from 24 analysts offering 12-month price targets for the company is 7,275 yen with a high estimate of 8,300 yen and a low estimate of 6,400 yen. The median estimate is a 20.43% increase from the last price which was 6,041 yen.