Toyota’s 1Q18 earnings estimates
According to Wall Street analysts’ estimates, Toyota Motor (TM) is expected to post adjusted EPS (earnings per share) of 156.4 Japanese yen or $1.40 in fiscal 1Q18. This would be about 13.6% lower than the company’s EPS of 181.1 Japanese yen reported in 1Q17.
Analysts expect Toyota’s global revenues to improve marginally by about 2.2% on a YoY (year-over-year) basis for the quarter. However, these estimates don’t reflect any improvement in the company’s profit margin. According to the estimates, Toyota’s net profit margins in 1Q18 could fall to 6.8% from 8.4% in 1Q17.
Now, let’s look at some key technical levels in Toyota’s stock.
Key technical levels
On June 20, Toyota’s ADR (American depositary receipt) breached a key support level near $105.50. Its 14-day relative strength index indicator is at 43.3, suggesting weakness in momentum. The ADR could test its next support near its 52-week low of $98.5 in the coming months.
On June 27, the stock price closed at $104.54, well below its 50-day moving average, which is at $107.03. We can expect its 50-day simple moving average to act as an immediate resistance.
In the next part, we’ll learn what Wall Street analysts are recommending for Toyota before 2Q17 ends.