Honda Motor (NYSE:HMC) Releases Earnings Results, Misses Estimates By $0.63 EPS

Honda Motor (NYSE:HMC) issued its quarterly earnings data on Tuesday. The company reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.63), Zacks reports. The business had revenue of $39.13 billion during the quarter, compared to the consensus estimate of $36.68 billion. Honda Motor had a negative return on equity of 1.76% and a negative net margin of 0.97%.

Here are the key takeaways from Honda Motor’s conference call:

• Honda raised its full-year operating profit forecast by ¥130 billion to ¥780 billion, with adjusted operating profit projected at ¥1.3 trillion. First-half adjusted operating profit was ¥1.134 trillion, though management cautioned that the second half will be tougher and some first-half gains were one-time items.
• Motorcycle sales reached a first-half record, led by India and Brazil, while auto sales fell, primarily because of weakness in China. Honda cited strong North American demand for hybrids and compact, fuel-efficient cars.
• Honda recorded ¥484.8 billion in EV-related losses for the first half and expects about ¥520 billion for the full year as it continues discussions with suppliers. Rising raw-material costs and geopolitical uncertainty are also weighing on the outlook.
• Honda plans a new Ohio auto plant focused mainly on larger hybrids and aims to raise North American production capacity to 1.91 million vehicles by 2029; the facility is designed to adapt to future EV production. It also plans to expand motorcycle capacity in Brazil from 1.6 million to 2.3 million units.
• The annual dividend forecast remains unchanged at ¥70 per share, with Honda citing a 3% dividend-on-equity benchmark while aiming for stable, continuous dividends.

Honda Motor Trading Down 4.3%

Shares of HMC opened at $33.37 on Thursday. The company has a quick ratio of 1.04, a current ratio of 1.29 and a debt-to-equity ratio of 0.69. The firm’s fifty day simple moving average is $33.14 and its two-hundred day simple moving average is $29.11. Honda Motor has a 12 month low of $23.25 and a 12 month high of $36.88.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on HMC. Weiss Ratings raised Honda Motor from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 22nd. Zacks Research raised Honda Motor from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 17th. Wall Street Zen upgraded Honda Motor from a “hold” rating to a “buy” rating in a research report on Saturday, September 19th. Finally, BNP Paribas Exane began coverage on Honda Motor in a research report on Friday, September 18th. They set a “neutral” rating and a $34.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Honda Motor currently has a consensus rating of “Moderate Buy” and an average price target of $34.00.

Honda Motor Company Profile

Honda Motor Co., Ltd. is a Japan-based manufacturer of automobiles, motorcycles and other mobility products. Its vehicle lineup includes passenger cars, SUVs and electrified models, while its motorcycle business serves consumers and commercial users in markets around the world. The company also makes power equipment, marine engines and other products, and provides financial services that support vehicle and equipment sales. Honda’s aviation subsidiary, Honda Aircraft Company, develops and manufactures the HondaJet business aircraft.