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Honda Motor Corporation Q4 Earnings Beat Estimates: ETFs in Focus

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Honda Motor Corporation (HMC - Free Report) reported fourth-quarter fiscal 2017 earnings per share (EPS) of ¥53.24 ($0.47/ADR), beating the Zacks Consensus Estimate of $0.21. The bottom line improved significantly from loss per share of ¥51.85 ($0.46/ADR) a year ago. It reported revenues of ¥3.76 trillion ($33.545 billion) for the quarter in discussion, up roughly 3.3% from ¥3.65 trillion ($32.463 billion) a year ago. Revenues beat the Zacks Consensus Estimate of $31.189 billion (read: Honda Q4 Earnings Beat Estimates, FY18 Guidance Soft).

 
As per the press release, operating profit came in at ¥138.1 billion ($1.231 billion) against a loss of ¥63.83 billion ($569 million) a year ago. The company declared year-end cash dividend of ¥24/share, bringing the full year dividend to ¥92/share. Moreover, the company expects to distribute ¥24/share in dividends every quarter in the next fiscal year.


Quarterly Revenue Performance


External Motorcycle Business revenues rose to ¥453.755 billion from ¥437.253 billion a year ago.


External Automobile Business revenues rose to ¥2.691 trillion from ¥2.675 trillion a year ago.


External Financial Service Business revenues rose to ¥517.716 billion from ¥455.337 billion a year ago.


External Power Product and Other Business revenues rose to ¥100.894 billion from ¥89.925 billion a year ago.


Total Intersegment revenues rose to ¥73.09 billion from ¥54.39 billion a year ago.


2018 Outlook


The company expects fiscal 2018 revenues to be ¥14.2 trillion, up 1.4% from 2017 levels. It expects operating income to fall over 16% to ¥705 billion and EPS to fall to ¥294.07.


Shares of Honda Motor Corporation closed 0.31% higher at market close on April 28, 2017.


Let us discuss a couple of ETFs that have a relatively high exposure to Honda Motor.


First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report)


This fund focuses on providing exposure to the global automotive sector. It has AUM of $18.13 million and charges a fee of 70 basis points a year. It has 7.39% allocation to Honda Motor (as of April 28, 2017). The fund returned 12.38% in the past one year and 5.52% in the year-to-date time frame (as of May 1, 2017). It closed 0.03% lower on Friday, April 28, 2017. CARZ currently has a Zacks ETF Rank #3 (Hold) with a High risk outlook.


BLDRS Asia 50 ADR Index Fund


This fund offers exposure to equities in the Asia Pacific region. It has AUM of $20.8 million and charges a fee of 40 basis points a year. It has a 3.49% exposure to Honda Motor (as of April 28, 2017). The fund returned 18.31% in the past one year and 9.28% in the year-to-date time frame (as of May 1, 2017). It closed 0.30% lower on Friday, April 28, 2017. ADRA currently has a Zacks ETF Rank #3 with a Medium risk outlook.


Below is a chart comparing the performance of the funds and Honda Motor.


 
Source: Yahoo Finance


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