Honda Motor (NYSE:HMC) Shares Gap Down on Disappointing Earnings

Honda Motor Co., Ltd. (NYSE:HMC)’s share price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $34.88, but opened at $33.38. Honda Motor shares last traded at $33.0750, with a volume of 319,092 shares.

The company reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.63). Honda Motor had a negative net margin of 0.73% and a negative return on equity of 1.30%. The business had revenue of $39.13 billion for the quarter, compared to analysts’ expectations of $36.68 billion.

Latest Honda Motor News

These are some of the HMC news items that stood out recently:

• Positive Sentiment: Honda raised its FY2027 profit outlook after first-half profit growth. Strong North American vehicle demand and a weaker yen helped overseas earnings, supporting the improved forecast despite EV restructuring costs and weakness in China. Honda Raises Guidance After First-Half Profit Growth
• Positive Sentiment: Honda plans to invest $3 billion in a new Ohio assembly plant focused on hybrids. Expected to start production in 2029, the 240,000-vehicle-a-year facility would lift U.S. production capacity to about 1.3 million vehicles annually and create more than 2,000 jobs. The investment could strengthen Honda’s hybrid capacity, though its benefits are longer term. Honda to build new $3 billion auto plant in Ohio, adding 2,000 jobs
• Negative Sentiment: Quarterly revenue rose about 13% year over year to $39.1 billion and exceeded analyst expectations, but profitability weakened as costs climbed. Operating profit and net income fell, and reported EPS of $0.32 missed the $0.95 consensus estimate—an earnings setback that could offset the improved outlook. Honda Motor quarterly earnings results

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Honda Motor

A number of hedge funds have recently added to or reduced their stakes in HMC. Fisher Asset Management LLC raised its position in Honda Motor by 4.9% during the third quarter. Fisher Asset Management LLC now owns 8,200,275 shares of the company’s stock valued at $259,129,000 after acquiring an additional 379,760 shares in the last quarter. Donald Smith & CO. Inc. bought a new stake in Honda Motor in the second quarter worth approximately $109,593,000. Bank of America Corp DE increased its stake in shares of Honda Motor by 3.6% during the 1st quarter. Bank of America Corp DE now owns 2,834,932 shares of the company’s stock worth $68,917,000 after purchasing an additional 99,301 shares during the last quarter. BlackRock Inc. increased its stake in shares of Honda Motor by 35.2% during the 2nd quarter. BlackRock Inc. now owns 2,655,980 shares of the company’s stock worth $72,004,000 after purchasing an additional 691,165 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in shares of Honda Motor by 16.5% during the 1st quarter. First Trust Advisors LP now owns 1,395,747 shares of the company’s stock valued at $33,931,000 after purchasing an additional 197,431 shares in the last quarter. Institutional investors and hedge funds own 5.32% of the company’s stock.

Honda Motor Stock Down 5.0%

The firm has a market cap of $51.71 billion, a P/E ratio of -47.33 and a beta of 0.48. The business’s fifty day moving average price is $33.11 and its two-hundred day moving average price is $29.09. The company has a current ratio of 1.29, a quick ratio of 1.04 and a debt-to-equity ratio of 0.69.

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.