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.
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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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.
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%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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