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Honda (HMC) Q3 Earnings Top Estimates, Up Y/Y, Dividend Hiked
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Honda Motor (HMC - Free Report) reported earnings of $1.31 per ADR for second-quarter fiscal 2021, which surpassed the Zacks Consensus Estimate of 58 cents on the back of higher-than-expected revenues. The bottom line also compared favorably with the year-ago earnings of $1.04 per share. Quarterly revenues totaled $34,407 million, surpassing the Zacks Consensus Estimate of $30,775 million. However, the top line declined 2% from the year-ago level.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period ended Sep 30, 2021, revenues from the Automobile segment slid 2.5% year over year to ¥2.5 trillion ($23.23 billion) amid lower sales from North America and Asia. Consequently, the segment registered operating profit of ¥125.4 billion ($1.18 billion), up from ¥74.9 billion in the year-ago quarter. Cost-containment efforts and lower SG&A expenses aided the margins.
Revenues from the Motorcycle segment came in at ¥493.1 billion ($4.64 billion), down 5.5% year over year on unfavorable forex translations. The unit’s operating profit declined 11.9% from the year-ago period to ¥68.4 billion ($644 million).
Revenues from the Financial Services segment totaled ¥666.5 billion ($6.3 billion), up 0.8% year on year. The unit’s operating profit increased 40.5% year over year to ¥93.3 billion ($878 million) due to decrease in credit losses from automobile sales.
Revenues from the Life Creation and Other Business came in at ¥86.8 billion (817 million), up 6.1% year over year. However, the segment incurred an operating loss of ¥4,189 million ($39.4 million) against income of ¥1,056 million posted in the corresponding period of the prior year amid weaker contribution from the aircraft and aircraft engine business.
Dividend, Financials & Outlook
The Zacks Rank #1 (Strong Buy) company announced a quarterly dividend of ¥19 per share for shareholders, up from the prior payout of ¥11. Total annual dividend per share to be paid for fiscal 2021 is expected to be ¥68 per share against the previous estimate of ¥44. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consolidated cash and cash equivalents were ¥2.96 trillion ($28 billion) as of Sep 30, 2020. Long-term debt was ¥4.52 trillion ($42.8 billion).
For fiscal 2021, Honda — whose peers include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and GeneralMotors (GM - Free Report) — expects sales and operating profit of ¥13.05 trillion and ¥420 billion, up from the prior estimate of ¥12.8 trillion and ¥200 billion, respectively.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Honda (HMC) Q3 Earnings Top Estimates, Up Y/Y, Dividend Hiked
Honda Motor (HMC - Free Report) reported earnings of $1.31 per ADR for second-quarter fiscal 2021, which surpassed the Zacks Consensus Estimate of 58 cents on the back of higher-than-expected revenues. The bottom line also compared favorably with the year-ago earnings of $1.04 per share. Quarterly revenues totaled $34,407 million, surpassing the Zacks Consensus Estimate of $30,775 million. However, the top line declined 2% from the year-ago level.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote
Segmental Highlights
For the three-month period ended Sep 30, 2021, revenues from the Automobile segment slid 2.5% year over year to ¥2.5 trillion ($23.23 billion) amid lower sales from North America and Asia. Consequently, the segment registered operating profit of ¥125.4 billion ($1.18 billion), up from ¥74.9 billion in the year-ago quarter. Cost-containment efforts and lower SG&A expenses aided the margins.
Revenues from the Motorcycle segment came in at ¥493.1 billion ($4.64 billion), down 5.5% year over year on unfavorable forex translations. The unit’s operating profit declined 11.9% from the year-ago period to ¥68.4 billion ($644 million).
Revenues from the Financial Services segment totaled ¥666.5 billion ($6.3 billion), up 0.8% year on year. The unit’s operating profit increased 40.5% year over year to ¥93.3 billion ($878 million) due to decrease in credit losses from automobile sales.
Revenues from the Life Creation and Other Business came in at ¥86.8 billion (817 million), up 6.1% year over year. However, the segment incurred an operating loss of ¥4,189 million ($39.4 million) against income of ¥1,056 million posted in the corresponding period of the prior year amid weaker contribution from the aircraft and aircraft engine business.
Dividend, Financials & Outlook
The Zacks Rank #1 (Strong Buy) company announced a quarterly dividend of ¥19 per share for shareholders, up from the prior payout of ¥11. Total annual dividend per share to be paid for fiscal 2021 is expected to be ¥68 per share against the previous estimate of ¥44. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consolidated cash and cash equivalents were ¥2.96 trillion ($28 billion) as of Sep 30, 2020. Long-term debt was ¥4.52 trillion ($42.8 billion).
For fiscal 2021, Honda — whose peers include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — expects sales and operating profit of ¥13.05 trillion and ¥420 billion, up from the prior estimate of ¥12.8 trillion and ¥200 billion, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>