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Honda (HMC) Beats on Q3 Earnings & Sales, Raises Dividend
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Honda Motor (HMC - Free Report) reported earnings of $1.58 per ADR for third-quarter fiscal 2021, surpassing the Zacks Consensus Estimate of 75 cents on higher-than-anticipated revenues. The bottom line also compares favorably with the year-ago earnings of 61 cents per share. Quarterly revenues totaled $36,116.6 million, beating the Zacks Consensus Estimate of $35,268 million. Moreover, the top line inched up 0.6%, year on year.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period ended Dec 31, 2020, revenues from the Automobile segment climbed 2.5% year over year to ¥2.6 trillion ($25.3 billion) primarily on sales growth in Japan and the United States, partly offset by a decrease in sales in Europe and Asia. Consequently, the segment registered an operating profit of ¥123.1 billion ($1.18 billion), significantly up from the year-ago quarter’s ¥33.7 billion. Cost-containment efforts and changes in sales volume aided the margins.
Revenues from the Motorcycle segment came in at ¥490.9 billion ($4.7 billion), down 7.4% year over year chiefly on account of decrease in sales in Asia. The unit’s operating profit came in at ¥72.7 billion ($696 million), slipping from the ¥74.5 billion seen in the year-ago quarter. Decrease in profit due to changes in sales volume and model mix resulted in this downside.
Revenues from the Financial Services segment totaled ¥617.6 billion ($5.9 billion), edging down 0.35% year on year. The unit’s operating profit increased 32.7% year over year to ¥85.7 billion ($820.6 million). This upswing primarily resulted from the year-on-year difference in the amount of the provision for credit losses recorded.
Revenues from the Life Creation and Other Business came in at ¥86.4 billion ($827.3 million), marginally up 0.04% year over year. However, the segment incurred an operating loss of ¥3,822 million ($36.6 million) compared with the loss of ¥6,184 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 #3 (Hold) company announced a quarterly dividend of ¥26 per share for shareholders, up from the prior payout of ¥19. Total annual dividend per share to be paid for fiscal 2021 is expected to be ¥82 per share against the previous estimate of ¥68. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated cash and cash equivalents were ¥2.87 trillion ($27.8 billion) as of Dec 31, 2020. Long-term debt was ¥4.31 trillion ($41.8 billion).
For fiscal 2021, Honda — peers of which include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — forecasts sales of ¥12.95 trillion, down from the prior estimate of ¥13.05 trillion. Nevertheless, the company projects operating profit of ¥520 billion, up from the previous estimate of ¥420 billion, respectively.
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Honda (HMC) Beats on Q3 Earnings & Sales, Raises Dividend
Honda Motor (HMC - Free Report) reported earnings of $1.58 per ADR for third-quarter fiscal 2021, surpassing the Zacks Consensus Estimate of 75 cents on higher-than-anticipated revenues. The bottom line also compares favorably with the year-ago earnings of 61 cents per share. Quarterly revenues totaled $36,116.6 million, beating the Zacks Consensus Estimate of $35,268 million. Moreover, the top line inched up 0.6%, year on year.
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 Dec 31, 2020, revenues from the Automobile segment climbed 2.5% year over year to ¥2.6 trillion ($25.3 billion) primarily on sales growth in Japan and the United States, partly offset by a decrease in sales in Europe and Asia. Consequently, the segment registered an operating profit of ¥123.1 billion ($1.18 billion), significantly up from the year-ago quarter’s ¥33.7 billion. Cost-containment efforts and changes in sales volume aided the margins.
Revenues from the Motorcycle segment came in at ¥490.9 billion ($4.7 billion), down 7.4% year over year chiefly on account of decrease in sales in Asia. The unit’s operating profit came in at ¥72.7 billion ($696 million), slipping from the ¥74.5 billion seen in the year-ago quarter. Decrease in profit due to changes in sales volume and model mix resulted in this downside.
Revenues from the Financial Services segment totaled ¥617.6 billion ($5.9 billion), edging down 0.35% year on year. The unit’s operating profit increased 32.7% year over year to ¥85.7 billion ($820.6 million). This upswing primarily resulted from the year-on-year difference in the amount of the provision for credit losses recorded.
Revenues from the Life Creation and Other Business came in at ¥86.4 billion ($827.3 million), marginally up 0.04% year over year. However, the segment incurred an operating loss of ¥3,822 million ($36.6 million) compared with the loss of ¥6,184 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 #3 (Hold) company announced a quarterly dividend of ¥26 per share for shareholders, up from the prior payout of ¥19. Total annual dividend per share to be paid for fiscal 2021 is expected to be ¥82 per share against the previous estimate of ¥68. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated cash and cash equivalents were ¥2.87 trillion ($27.8 billion) as of Dec 31, 2020. Long-term debt was ¥4.31 trillion ($41.8 billion).
For fiscal 2021, Honda — peers of which include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — forecasts sales of ¥12.95 trillion, down from the prior estimate of ¥13.05 trillion. Nevertheless, the company projects operating profit of ¥520 billion, up from the previous estimate of ¥420 billion, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
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