Company Raises Operating Income View to ¥3.8T
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy TM?
Raises operating income view to Y3.8T from Y3.4T. Raises EPS view to Y273.91 from Y224.81. The company said, "Despite the continued impact of U.S. tariffs, strong demand supported by product competitiveness has led to increased sales volumes, and we achieved a high level of profit due to price revisions...Despite the 1,450 billion yen negative impact of U.S. tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts...Company-wide initiatives aimed at reducing the break-even volume. Strengthening earning power for medium- to long-term competitiveness to continue. Together with suppliers, we will increase productivity to generate resources for growth and protect Japanese manufacturing."
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About TM
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Star Athlete Participation: Featuring NFL wide receiver Puka Nacua, Paralympian Oksana Masters, and NASCAR driver Bubba Wallace, the ads showcase their interactions with their younger selves, conveying the dreams and efforts behind every champion, further enhancing the brand's image.
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See More
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- Strategic Shift: Instead of Super Bowl ads, automakers are focusing on other sports sponsorships and digital platforms, with Muller highlighting that they now account for roughly 60% of live sports ad spend, indicating a shift away from traditional advertising models.
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See More
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- AI Technology Advancement: Toyota's collaboration with Boston Dynamics utilizes large behavior model (LBM) AI to help Atlas robots learn, enhancing their adaptability in factory settings, which is expected to accelerate skill acquisition and improve production flexibility.
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See More
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- Factory Integration Plans: Hyundai plans to deploy Atlas robots in its Georgia car factory by 2028, starting with simple tasks like parts sequencing and expanding to more complex activities by 2030, showcasing the potential for humanoid robots in manufacturing.
- Toyota's AI Breakthrough: Toyota's collaboration with Boston Dynamics utilizes large behavior model (LBM) AI to enhance Atlas robots' learning capabilities, allowing them to adapt quickly to changes in factory settings, which could accelerate the development of advanced robotic skills.
- Tesla's Robotics Strategy: Tesla aims to convert its Fremont factory to produce Optimus robots with a target capacity of 1 million units per year, and although still in the R&D phase, Musk believes that 80% of the company's future value will derive from this business, highlighting the strategic importance of robotics for Tesla.
See More
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- Cost Pressure on Ads: The average cost for a 30-second Super Bowl ad is $8 million, leading many automakers to opt out of participation, reallocating their advertising budgets to other channels, which impacts their overall market promotion strategies.
- Future Advertising Directions: Automakers are shifting towards more sports and streaming advertisements; despite the reduction in Super Bowl ads, they still account for 60% of spending on live sports, demonstrating adaptability and innovation in their advertising approaches.
See More
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- Extended-Range EV Exploration: Volkswagen is developing extended-range EVs similar to plug-in hybrids, which utilize a small gas engine as a generator to alleviate range anxiety and reduce battery costs, potentially attracting more prospective buyers.
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See More
