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Honda (HMC) Rises Since Q3 Earnings Beat, Ups Profit View
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Honda Motor’s (HMC - Free Report) shares have edged up 3.4% since it delivered a comprehensive third-quarter fiscal 2021 beat on Feb 9. Investors were also encouraged by upbeat profit forecasts for fiscal 2022.
The Japan-based auto giant reported earnings of 99 per share for third-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 86 cents. The bottom line, however, fell from the year-ago profit of $1.58 per share. Quarterly revenues totaled $32,469 million, topping the Zacks Consensus Estimate of $30,323 million. The top line, however, slid 10.1% year on year.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period ended Dec 31, 2021, revenues from the Automobile segment decreased 11% year over year to ¥2.39 trillion ($21.01 billion) amid lower sales, primarily in the United States and China. The segment registered an operating profit of ¥71.4 billion ($628.4 million), down 42% on a year-over-year basis due to chip crunch-related headwinds.
Revenues from the Motorcycle segment came in at ¥578.37 billion ($4.6 billion), up 17.8% year over year, primarily on the back of higher sales volume in Indonesia. The unit’s operating profit came in at ¥84.26 billion ($741.5 million), rising 15.8% year over year. The increase in profit stemmed from higher sales volume and a favorable model mix.
Revenues from the Financial Services segment totaled ¥672.6 billion ($5.92 billion), up 8.2% year on year. The unit’s operating profit, however, decreased 5.1% year over year to ¥81.3 billion ($715.5 million).
Revenues from the Life Creation and Other Business came in at ¥111.26 billion ($979 million), up 28.7% year over year. The segment incurred an operating loss of ¥7.6 billion ($6.68 million), wider than the year-ago loss of ¥3.8 billion.
Financials
The company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110, which includes an interim and a year-end cash dividend of ¥55 each. Consolidated cash and cash equivalents were ¥2.69 trillion ($23.36 billion) as of Dec 31, 2021. Long-term debt was ¥4.48 trillion ($38.9 billion).
Revised FY22 View
For fiscal 2022, Honda forecasts sales of ¥14.55 trillion, slightly down from the previous projection of ¥14.6 million but implying a 10.5% uptick year over year. Operating profit is now forecast at ¥800 billion, increasing from the prior guidance of ¥660 billion and indicating a year-over-year rise of 21.2%. Pretax profit is envisioned at ¥1,020 billion, up from the previous projection of ¥860 billion. The revised forecast also implies 11.6% year-over-year growth.
The company’s R&D expenses for fiscal 2022 are likely to be ¥820 billion, suggesting a rise from ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating almost no change from fiscal 2021 levels. Honda currently carries a Zacks Rank #4 (Sell).
Toyota (TM - Free Report) posted fiscal third-quarter 2022 earnings of $5.03 per share, which surpassed the Zacks Consensus Estimate of $3.74 on higher-than-expected revenues. The bottom line, however, declined from the year-ago earnings of $5.67 a share. Consolidated revenues came in at $68,530 million, beating the consensus mark of $67,258 million but contracting 12.4% year over year.
For fiscal 2022, Toyota projects fiscal 2022 consolidated vehicle sales of 10.3 million, indicating an increase from 9.9 million units sold in fiscal 2021. Fiscal 2022 sales are expected to total ¥29.5 trillion. Operating income is projected at ¥2.8 trillion, indicating growth of 27.4% year over year. TM currently carries a Zacks Rank #3 (Hold).
Nissan (NSANY - Free Report) posted fiscal third-quarter 2021 earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents. The bottom line also turned around from the year-ago loss of 8 cents a share. Consolidated revenues came in at $20,113 million, beating the consensus mark of $18,980 million but contracting 5.5% year over year.
For fiscal 2021, Nissan projects revenues of ¥8.71 trillion. Operating profit is envisioned at ¥210 billion, reflecting an increase of ¥30 billion from the prior view. The company forecasts net profit of ¥205 billion, up ¥25 billion from the previous guidance. NSANY currently carries a Zacks Rank #3.
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Honda (HMC) Rises Since Q3 Earnings Beat, Ups Profit View
Honda Motor’s (HMC - Free Report) shares have edged up 3.4% since it delivered a comprehensive third-quarter fiscal 2021 beat on Feb 9. Investors were also encouraged by upbeat profit forecasts for fiscal 2022.
The Japan-based auto giant reported earnings of 99 per share for third-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 86 cents. The bottom line, however, fell from the year-ago profit of $1.58 per share. Quarterly revenues totaled $32,469 million, topping the Zacks Consensus Estimate of $30,323 million. The top line, however, slid 10.1% 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, 2021, revenues from the Automobile segment decreased 11% year over year to ¥2.39 trillion ($21.01 billion) amid lower sales, primarily in the United States and China. The segment registered an operating profit of ¥71.4 billion ($628.4 million), down 42% on a year-over-year basis due to chip crunch-related headwinds.
Revenues from the Motorcycle segment came in at ¥578.37 billion ($4.6 billion), up 17.8% year over year, primarily on the back of higher sales volume in Indonesia. The unit’s operating profit came in at ¥84.26 billion ($741.5 million), rising 15.8% year over year. The increase in profit stemmed from higher sales volume and a favorable model mix.
Revenues from the Financial Services segment totaled ¥672.6 billion ($5.92 billion), up 8.2% year on year. The unit’s operating profit, however, decreased 5.1% year over year to ¥81.3 billion ($715.5 million).
Revenues from the Life Creation and Other Business came in at ¥111.26 billion ($979 million), up 28.7% year over year. The segment incurred an operating loss of ¥7.6 billion ($6.68 million), wider than the year-ago loss of ¥3.8 billion.
Financials
The company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110, which includes an interim and a year-end cash dividend of ¥55 each. Consolidated cash and cash equivalents were ¥2.69 trillion ($23.36 billion) as of Dec 31, 2021. Long-term debt was ¥4.48 trillion ($38.9 billion).
Revised FY22 View
For fiscal 2022, Honda forecasts sales of ¥14.55 trillion, slightly down from the previous projection of ¥14.6 million but implying a 10.5% uptick year over year. Operating profit is now forecast at ¥800 billion, increasing from the prior guidance of ¥660 billion and indicating a year-over-year rise of 21.2%. Pretax profit is envisioned at ¥1,020 billion, up from the previous projection of ¥860 billion. The revised forecast also implies 11.6% year-over-year growth.
The company’s R&D expenses for fiscal 2022 are likely to be ¥820 billion, suggesting a rise from ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating almost no change from fiscal 2021 levels. Honda currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Toyota (TM - Free Report) posted fiscal third-quarter 2022 earnings of $5.03 per share, which surpassed the Zacks Consensus Estimate of $3.74 on higher-than-expected revenues. The bottom line, however, declined from the year-ago earnings of $5.67 a share. Consolidated revenues came in at $68,530 million, beating the consensus mark of $67,258 million but contracting 12.4% year over year.
For fiscal 2022, Toyota projects fiscal 2022 consolidated vehicle sales of 10.3 million, indicating an increase from 9.9 million units sold in fiscal 2021. Fiscal 2022 sales are expected to total ¥29.5 trillion. Operating income is projected at ¥2.8 trillion, indicating growth of 27.4% year over year. TM currently carries a Zacks Rank #3 (Hold).
Nissan (NSANY - Free Report) posted fiscal third-quarter 2021 earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents. The bottom line also turned around from the year-ago loss of 8 cents a share. Consolidated revenues came in at $20,113 million, beating the consensus mark of $18,980 million but contracting 5.5% year over year.
For fiscal 2021, Nissan projects revenues of ¥8.71 trillion. Operating profit is envisioned at ¥210 billion, reflecting an increase of ¥30 billion from the prior view. The company forecasts net profit of ¥205 billion, up ¥25 billion from the previous guidance. NSANY currently carries a Zacks Rank #3.