Toyota Motor (TM) Stock Falls on Profit Warning
NEW YORK (TheStreet) -- Shares of Toyota Motor (TM) - Get Report are down by 3.17% to $101.50 at the start of trading on Wednesday morning, after the automaker warned that a stronger yen will drive down profit for the current fiscal year.
The company, which is the world's biggest car maker by vehicle, is expecting sales to drop by more than a third for the current fiscal year ending March 2017, the Wall Street Journal reports.
The company reported a 6.4% rise in net profit to $21.3 billion for the most recent fiscal year, helped by a weak yen and strong North America sales.
"Until now, we benefited from currencies and our profits expanded beyond our actual capabilities. But since the beginning of this year, the tide has greatly shifted," Toyota President Akio Toyoda said, the Journal noted.
Separately, TheStreet Ratings has set a "buy" rating and a score of B- on Toyota stock. This is driven by several positive factors, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers.
The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TM
