Toyota Motor (TM) Stock Rises on Record Profit

Toyota Motor (TM) stock is climbing in early morning trading on Thursday, after the company reported its 2016 second quarter financial results before the market open.
By Rachel Graf ,

NEW YORK (TheStreet) -- Toyota Motor (TM) - Get Report stock is higher by 1.11% to $124.84 in early morning trading on Thursday, as the company's fiscal 2016 second quarter record profit overshadows its diminished sales outlook. 

Before the market open, the Japan-based automaker posted a profit of 611.7 billion yen, or $5.02 billion, for the six months ended September 30. Profit increased by 14% from the year ago period to reach its highest level for any second quarter, the Wall Street Journal reports.

Toyota reported a record 827.4 billion yen operating profit for the quarter, up from 659.2 billion yen for the fiscal 2015 second quarter. The company maintained its full-year profit forecast for a record 2.25 trillion yen.

However, Toyota lowered its group-wide sales forecast by 150,000 to 10 million vehicles and cut its full-year revenue forecast by 1% to 27.5 trillion yen, according to the Journal. 

"Despite decreased vehicle sales and increased expenses to promote the Toyota New Global Architecture and research into cutting-edge technologies, progress in cost reduction and other profit improvement activities, in addition to favorable foreign exchange rates, contributed to the increase in operating income," managing officer Tetsuya Otake said in a statement.


Separately, TheStreet Ratings team rates TOYOTA MOTOR CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate TOYOTA MOTOR CORP (TM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: TM

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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