Honda Motor (NYSE:HMC) Issues Earnings Results

Honda Motor (NYSE:HMC) issued its quarterly earnings data on Tuesday. The company reported $0.32 earnings per share for the quarter, missing analysts’ consensus estimates of $0.95 by ($0.63), Zacks reports. The firm had revenue of $39.13 billion during the quarter, compared to analysts’ expectations of $36.68 billion. Honda Motor had a negative net margin of 0.73% and a negative return on equity of 1.30%.

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 Stock Performance

Honda Motor stock traded down $1.50 during trading hours on Wednesday, reaching $33.38. 972,244 shares of the stock were exchanged, compared to its average volume of 1,402,340. The stock has a market cap of $52.09 billion, a P/E ratio of -47.66 and a beta of 0.48. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.04 and a current ratio of 1.29. Honda Motor has a 52-week low of $23.25 and a 52-week high of $36.88. The firm’s 50 day moving average is $33.11 and its 200 day moving average is $29.09.

Wall Street Analyst Weigh In

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

Recent Honda Motor Headlines

Investors following HMC have been watching these headlines:

• Neutral Sentiment: Institutional ownership data showed more investors adding shares than reducing positions in the latest reported quarters, but those past holdings changes do not establish current buying activity.
• Negative Sentiment: Honda’s FY 2027 EPS guidance of $2.421 is below the $3.210 consensus estimate, despite the revenue forecast coming in above expectations. The gap raises concern about earnings power and margins.
• Negative Sentiment: In Q2, revenue rose 12.75% year over year to about $39.1 billion and beat estimates, but EPS missed estimates; operating profit and net income declined as costs increased. The profit shortfall may be a near-term headwind. Honda Q2 2027 Earnings: Revenue Up, Profitability Falls

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.