First quarter electrified Toyota and Lexus sales make up more than 50 percent of total sales volume Lexus Division records its best-ever first quarter sales result 32 electrified vehicle options available, the most among any automaker with more in showrooms throughout 2025 PLANO, Texas, April 1, 2025 /PRNewswire/ -- Toyota Motor North America (TMNA) today reported March 2025 U.S. sales of 231,335 vehicles, up 7.7 percent on a volume basis and up 11.8 percent on a daily selling rate (DSR) basis versus March ...

Brand new Toyota cars are displayed on the sales lot at Hanlees Hilltop Toyota on March 4, 2025 in Richmond, California. Justin Sullivan | Getty Images Newly announced U.S. tariffs on auto imports have rattled Asian automakers, pressuring companies ahead of the implementation of the duties later in the week. U.S. President Donald Trump last Wednesday announced sweeping 25% tariffs on cars "not made in the U.S.," sending shockwaves through global automakers. Shares of Toyota fell 9.4% in the three sessions f ...

Core Viewpoint - The automotive industry is facing challenges due to new U.S. tariffs, with Toyota Motor being significantly impacted, leading to a decline in its stock price by 4% as investors assess the situation [1][2]. Group 1: Tariff Impact - A 25% tariff on imported automobiles and parts is being imposed by the U.S., which directly affects Toyota, as automobiles constituted 28% of all Japanese exports to the U.S. in 2024 [2]. - The tariffs are expected to increase vehicle prices, potentially leading to reduced sales for Toyota [3]. Group 2: Competitive Landscape - Toyota is not alone in facing these challenges; competitors like General Motors and Ford, along with other foreign manufacturers, are also affected by the tariffs [4]. - Despite the current challenges, Toyota's reputation for efficiency may provide a long-term advantage in a volatile cost environment [4]. Group 3: Investment Perspective - The ongoing trade war and tariffs are likely to create market volatility, but for long-term investors, a decline in Toyota's stock could present a buying opportunity given its strong management [5].

Core Insights - Wildflower Solar has commenced full commercial operations in DeSoto County, Mississippi, marking Deriva Energy's first investment in the state [1][2] - The project aligns with Toyota's sustainability initiatives, contributing to their goal of achieving carbon neutrality by 2035 [2][4] Company Overview - Deriva Energy is a leader in clean energy with over 6,000 megawatts of operating assets and more than 12,500 megawatts in development across the U.S. [4] - Toyota has been a significant player in North America for nearly 70 years, focusing on sustainable mobility and offering 31 electrified vehicle options [5][6] Economic Impact - Wildflower Solar project created nearly 300 construction jobs and will provide long-term employment opportunities while enhancing the local tax base [3] - The renewable energy generated will be sold to Toyota Motor North America, supporting their corporate sustainability goals [3][4]

Core Points - Toyota Motor North America (TMNA) announced its fifth round of grant funding through the Way Forward Fund, focusing on improving care for children affected by traumatic brain injuries (TBI) [1][2] - The recent funding round allocated over $4 million in grants to various organizations, emphasizing the enhancement of healthcare quality in communities with significant needs [4] Group 1: Grant Funding and Objectives - The Way Forward Fund aims to raise awareness, advance research, and improve equitable access to care for communities across the U.S. [2] - The current funding round expands the focus on strengthening community resources and aims to connect experts and organizations for continuous improvement in TBI care [3] Group 2: Commitment to Health Equity - Toyota is committed to sustainable programs with long-term impacts, collaborating with the TBI care community to address funding gaps and support health equity for children and families [2][4] - The initiative is part of Toyota's broader mission as a mobility company, emphasizing the importance of access to care for children and families [4] Group 3: Background Information - TBI is recognized as a major pediatric health condition that is often under-resourced, according to the National Academy of Science, Engineering and Medicine and the CDC [5] - Toyota has been a significant player in North America for nearly 70 years, with a commitment to advancing sustainable mobility through its brands and dealerships [6]

Core Insights - Briggs & Stratton's Vanguard brand has announced a primary sponsorship of professional racecar driver Spike Kohlbecker, marking a significant partnership in motorsports [1][2] - Kohlbecker will also act as a Vanguard Brand Ambassador at various events across North America in 2025, showcasing the brand's commitment to motorsports [1][2] Company Overview - Briggs & Stratton, headquartered in Milwaukee, Wisconsin, is the world's largest producer of engines for outdoor power equipment and offers a wide range of power solutions, including lithium-ion batteries and standby generators [3] - The company operates under multiple brands, including Vanguard, Ferris, Simplicity, Snapper, and others, and its products are marketed and serviced in over 100 countries [3] Driver Profile - Spike Kohlbecker, a 22-year-old from St. Louis, Missouri, is a professional racecar driver and a student at Boise State University, who has already achieved notable success in his racing career [4] - He was awarded Vice-Champion of the 2024 Toyota GR Cup North American Championship and is entering his third season in sportscar racing [4] Team Background - RVA Graphics Motorsports, the team Kohlbecker is associated with, has a history in endurance racing and has transitioned to professional sports car racing, competing in the IMSA Michelin Pilot Challenge and Toyota GR Cup North America [5]

Core Viewpoint - Brokerage recommendations, particularly for Toyota Motor Corporation, suggest a strong buy, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [2][4][9]. Brokerage Recommendation Summary - Toyota Motor has an average brokerage recommendation (ABR) of 1.50, indicating a position between Strong Buy and Buy, with 75% of the eight recommendations being Strong Buy [2]. - The ABR is calculated based on recommendations from eight brokerage firms, with six firms rating it as Strong Buy [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [4][9]. Zacks Rank Comparison - Zacks Rank categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more reliable indicators of near-term stock price movements [7][10]. - The Zacks Rank for Toyota Motor is currently 4 (Sell), reflecting a 0.7% decline in the consensus earnings estimate to $19.76 over the past month, indicating growing pessimism among analysts [12][13]. - The ABR and Zacks Rank are different measures; the ABR is based on brokerage recommendations, while the Zacks Rank is driven by earnings estimate revisions and is more timely [8][11].

Core Insights - Toyota has partnered with Sonoro to launch a new podcast series titled "Chasing Sueños," aimed at engaging the Hispanic community in the U.S. [2][3] - The podcast consists of seven episodes featuring influential Latin artists, focusing on themes of ambition, resilience, and cultural identity [3][5] - The series is designed to enhance brand engagement by blending storytelling with product promotion, particularly highlighting the Toyota Corolla [4][6] Company Overview - Toyota is committed to building vehicles that resonate with people's lifestyles and employs nearly 64,000 people in North America, with about 48,000 in the U.S. [8] - The company has assembled nearly 47 million vehicles in North America over the past 70 years and is set to manufacture automotive batteries for electrified vehicles in North Carolina starting spring 2025 [9] - In 2024, Toyota sold over 2.7 million vehicles in North America, with more than 43% being electrified [10] Sonoro's Role - Sonoro is a leading Hispanic media company focused on creating culturally relevant content and has established itself as a pioneer in audio storytelling [11][12] - The company has over 100 million monthly downloads across its podcast network and reaches one out of every three U.S. Hispanics [12] - Sonoro collaborates with both established and emerging Latino storytellers to develop original content in multiple languages [11][12] AJ Ramos' Contribution - AJ Ramos, a prominent figure in the Latin music and media industry, hosts and executive produces the "Chasing Sueños" podcast [5][14] - He has a strong background in facilitating opportunities for artists and currently holds a significant position at YouTube Music/Google [14][15] - Ramos is recognized for his contributions to Latin music and culture, having received multiple accolades in the industry [15][16]

Core Insights - Toyota's shares have decreased by 5.3% following the release of its third-quarter fiscal 2025 results, which showed an earnings per share (EPS) of $9.98, significantly exceeding the Zacks Consensus Estimate of $4.36 and up from $6.81 in the previous year [1] - Consolidated revenues for the quarter were reported at $81.35 billion, surpassing the consensus estimate of $78.36 billion but down from $81.54 billion year-over-year [1] Financial Performance - The Automotive segment's net revenues increased by 1.7% year-over-year to ¥11.25 trillion ($73.8 billion), exceeding estimates of ¥10.71 trillion, while operating profit fell by 31.7% to ¥1 trillion ($6.61 billion) but was above the estimate of ¥912.9 billion [3] - The Financial Services segment's net revenues rose by 10.9% year-over-year to ¥1.02 trillion ($6.71 billion), surpassing the forecast of ¥933.5 billion, with operating income at ¥163.7 billion ($1.07 billion), down 4.8% from the previous year but above the estimate of ¥120.1 billion [4] - All Other businesses reported net revenues of ¥393 billion ($2.58 billion), a 10% increase year-over-year, exceeding projections of ¥377.9 billion, with an operating profit of ¥50.5 billion ($331.5 million), up 14.5% year-over-year and above the estimate of ¥34.4 billion [5] Future Guidance - For fiscal 2025, Toyota anticipates total retail vehicle sales of 10.85 million units, a decrease from 11.09 million units in fiscal 2024, with expected sales totaling ¥47 trillion compared to ¥45 trillion in fiscal 2024 [6] - Projected operating income for fiscal 2025 is ¥4.7 trillion, indicating a contraction of 12.2% year-over-year, while pretax profit is estimated at ¥6.18 trillion, down from ¥6.96 trillion in fiscal 2024 [6][7] - Research and development expenses are expected to rise to ¥1.3 trillion from ¥1.2 trillion, and capital expenditures are forecasted to increase to ¥2.15 trillion from ¥2.01 trillion [7] Market Position - Toyota currently holds a Zacks Rank of 4 (Sell), with better-ranked stocks in the automotive sector including Geely Automobile Holdings Limited (GELYY), Dana Incorporated (DAN), and Allison Transmission Holdings, Inc. (ALSN), with GELYY and DAN rated as 1 (Strong Buy) and ALSN rated as 2 (Buy) [8]

Core Insights - The investment philosophy emphasizes the importance of financial performance and valuation, with a focus on return on invested capital (ROIC) as a key metric for classifying potential investments [1] Investment Classification - Investments are classified into three categories based on ROIC: - Long-term/Indefinite: ROIC greater than 9% and capable of growing intrinsic value [1] - Medium-term: ROIC between 6% and 9% with the ability to maintain intrinsic value [1] - Value Traps: ROIC less than 6% and unable to meet their cost of capital [1] Investment Strategy - The strategy is influenced by Warren Buffett's focus on long-term moats and value creation, combined with Peter Lynch's approach to growth opportunities [1] - The goal is to acquire value opportunities at a 30% discount to intrinsic value, targeting over 9% return on equity (ROE) adjusted for the equity value per share at purchase [1] - Growth is viewed as a subjective variable, estimated through retained earnings and return on equity over the past decade [1]