Honda Motor (NYSE:HMC) Releases Earnings Results

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

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

Shares of NYSE HMC traded down $1.47 during midday trading on Wednesday, hitting $33.41. 1,006,232 shares of the company’s stock were exchanged, compared to its average volume of 1,402,534. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.29 and a quick ratio of 1.04. The stock’s 50 day moving average price is $33.11 and its 200-day moving average price is $29.09. The firm has a market cap of $52.15 billion, a P/E ratio of -47.72 and a beta of 0.48. Honda Motor has a twelve month low of $23.25 and a twelve month high of $36.88.

Wall Street Analyst Weigh In

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

Key Headlines Impacting Honda Motor

These are some of the HMC headlines that stood out recently:

• Positive Sentiment: Honda raised its FY 2027 outlook after first-half profit growth, citing solid North American demand and a weaker yen. It also forecast revenue of $153.3 billion, above the $148.1 billion consensus. Honda Raises Guidance After First-Half Profit Growth
• 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: 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

About Honda Motor

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.