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Honda's (HMC) Q4 Earnings & Revenues Beat Estimates, Up Y/Y

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Honda Motor Co., Ltd. (HMC - Free Report) reported consolidated income of ¥ 107.7 billion or ¥60.59 per share (56 cents per ADR) in the fourth quarter of fiscal 2018 (ended Mar 31, 2018), up 12.3% from the year-ago period. The Zacks Consensus Estimate for earnings per share during the reported quarter was 46 cents.

Consolidated sales revenues increased 4% year over year to ¥3.91 trillion ($36.1 billion). The figure surpassed the Zacks Consensus Estimate of $34.7 billion. The year-over-year increase can be attributed to higher revenues in all business operations despite unfavorable foreign currency translations.

Consolidated operating profit was ¥ 126.8 billion, reflecting a decrease of 8.2% from the prior-year quarter, attributable to an increase in selling, general and administrative (SG&A) expenses and unfavorable currency effects despite continuous efforts to cut costs.

Segmental Performance

For the three months ended Mar 31, 2018, revenues from the Automobile segment’s sales increased 2.7% to ¥2.77 trillion. During the reported quarter, unit sales increased 17.8% year over year to 3.17 million. The Motorcycle segment increased 14.8% to ¥520.9 billion whereas unit sales decreased 1% on a year-over-year basis to 0.9 million.

In the quarter ended Mar 31, 2018, the Financial Services segment increased 1.9% to ¥527.4 billion ($46.5 billion). The Power Product & Other segment was up 0.4% to ¥101.2 billion whereas unit sales increased 11.7% on a year-over-year basis to 2.22 million vehicles.

Financial Position

Consolidated cash and cash equivalents were ¥2.26 trillion as of Mar 31, 2018, up from ¥2.11 trillion as of Mar 31, 2017.

Guidance

For fiscal 2019 (ending Mar 31, 2019), Honda expects revenues to improve 1.6% to ¥15.6 trillion. Operating income is likely to decline 16% to ¥700 billion. Profit before income taxes is projected to fall 17.5% to ¥950 billion.

Honda Motor Co., Ltd. Price, Consensus and EPS Surprise

Honda Motor Co., Ltd. Price, Consensus and EPS Surprise | Honda Motor Co., Ltd. Quote

Zacks Rank & Other Key Picks

Honda currently has a Zacks Rank #2 (Buy).

Other top-ranked stocks in the same space include Fox Factory Holding Corp. (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Yamaha Motor Co., Ltd. (YAMHF - Free Report) , each carrying a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fox Factory Holding has expected long-term growth rate of 10.5%. In the past year, shares of the company have returned 13.6%.

Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have advanced 4.1%.

Yamaha Motor has expected long-term growth rate of 10.1%. In a year, shares of the company have returned 42.8%.

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