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Honda Q1 Earnings Surpass Expectations, Revenues Rise Y/Y
ZACKS· 2025-08-15 15:45
Core Insights - Honda reported earnings of $0.97 per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $0.51, but down from $1.57 in the same quarter last year [1][10] - Quarterly revenues reached $37 billion, slightly below the Zacks Consensus Estimate of $37.8 billion, but higher than $34.7 billion from the previous year [1] Segmental Highlights - The Automobile segment's revenues increased by 1.1% year over year to ¥3.54 trillion ($24.4 billion), but it incurred an operating loss of ¥29.6 billion ($204 million), contrasting with an operating income of ¥222.8 billion in the same quarter last year [2] - Motorcycle segment revenues were approximately ¥951.6 billion ($6.58 billion), up 1.5% year over year, with an operating profit of ¥189 billion ($1.30 billion), reflecting a 6.8% increase year over year [3] - Financial Services segment revenues totaled ¥832.6 billion ($5.76 billion), down 11.4% year over year, with operating profit remaining flat at ¥85 billion ($588 million) [3] - Power Products and Other Businesses generated revenues of ¥92.8 billion ($641 million), a decrease of 2.2% year over year, but the operating loss narrowed to ¥219 million from ¥753 million in the same period last year [4] Financials & FY26 Outlook - As of June 30, 2025, Honda's consolidated cash and cash equivalents stood at ¥4.01 trillion ($27.7 billion), with long-term debt around ¥6.95 trillion ($48.1 billion) [5] - For fiscal 2026, Honda projects consolidated sales volumes of 14.25 million units for Motorcycles, 2.83 million units for Automobiles, and 3.67 million units for Power Products, indicating a 4.1% growth in Motorcycles but declines of 0.3% and 0.8% in Automobiles and Power Products, respectively [6] - Honda forecasts fiscal 2026 revenues of ¥21.1 trillion, a decline of 2.7% year over year, with an operating profit expected at ¥700 billion, down 42.3% year over year, and a pretax profit forecasted at ¥710 billion, suggesting a drop of 46.1% year over year, attributed to macroeconomic and tariff-related challenges [7]
HMC Q4 Earnings Miss, FY26 View Downbeat Amid Tariff Woes
ZACKS· 2025-05-15 15:00
Core Insights - Honda reported earnings of 18 cents per share for Q4 fiscal 2025, missing the Zacks Consensus Estimate of 72 cents and declining from 99 cents per share in the previous year [1] - Quarterly revenues totaled $35.1 billion, falling short of the Zacks Consensus Estimate of $35.6 billion and the year-ago figure of $36.5 billion [1] Segment Performance - The Automobile segment's revenues decreased by 2.8% year over year to ¥3.57 trillion ($23.4 billion), but exceeded projections of ¥3.4 trillion. The segment recorded an operating loss of ¥158.7 billion ($1.04 billion), compared to an operating income of ¥100.1 billion in the same quarter of fiscal 2024 [2] - Revenues from the Motorcycle segment increased by 6.7% year over year to ¥919.6 billion ($6.12 billion), surpassing estimates of ¥873 billion. The operating profit rose by 11.8% year over year to ¥161.7 billion ($1.06 billion), exceeding the forecast of ¥160.8 billion [3] - The Financial Services segment reported revenues of ¥849 billion ($5.56 billion), down 1.7% year on year and below the prediction of ¥879 billion. Operating profit increased by 2.2% year over year to ¥70.6 billion ($462 million), but fell short of the estimate of ¥75.2 billion [4] - Revenues from Power Products and Other Businesses were ¥113.2 billion ($742 million), down 2.2% year over year, yet exceeded the forecast of ¥104.2 billion. The segment achieved breakeven compared to a loss of ¥8.3 billion in the same period last year [5] Financial Overview - As of March 31, 2025, consolidated cash and cash equivalents were ¥4.53 trillion ($31.04 billion), while long-term debt increased to ¥6.95 trillion ($47.67 billion) from ¥6.06 trillion a year earlier [5] Future Projections - For fiscal 2026, Honda projects consolidated sales volumes of 14.25 million units for Motorcycles, 2.83 million units for Automobiles, and 3.67 million units for Power Products, indicating a 4.1% growth in Motorcycle unit sales, but declines of 0.3% and 0.8% in Automobile and Power Product unit sales, respectively [6] - Honda forecasts fiscal 2026 revenues of ¥20.3 trillion, reflecting a decline of 6.4% year over year. Operating profit is expected to be ¥500 billion, indicating a contraction of 58.8% year over year, while pretax profit is projected at ¥490 billion, suggesting a drop of 62.8% year over year, attributed to macroeconomic and tariff-related challenges [7]