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Honda (HMC - Free Report) reported earnings of 80 cents per share for second-quarter fiscal 2023, lagging the Zacks Consensus Estimate of 91 cents. The bottom line also fell from the year-ago profit of 88 cents per share. Quarterly revenues totaled $30,824.4 million, topping the Zacks Consensus Estimate of $29,653.6 million. The top line, however, inched down from $30,925.2 million recorded in the year-ago period.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period, which ended on Sep 30, 2022, revenues from the Automobile segment increased 22.6% year over year to ¥2.67 trillion ($19.37 billion). The segment registered an operating profit of ¥25.3 billion ($183.2 million), plummeting 45.4% on a year-over-year basis.
Revenues from the Motorcycle segment came in at ¥736.6 billion ($5.33 billion), up 45.7% year over year. The unit’s operating profit came in at ¥127 billion ($919.2 million), jumping 88.2% year over year.
Revenues from the Financial Services segment totaled ¥779 billion ($5.64 billion), up 15.2% year on year. The unit’s operating profit, however, decreased 12.2% year over year to ¥74.2 billion ($537.6 million).
Revenues from the Power Product and Other Businesses came in at ¥117 billion ($847.5 million), up 18.8% year over year. The segment incurred an operating income of ¥4.7 billion ($34.29 million), skyrocketing from ¥532 million generated in the year-ago period.
Financials & FY23 View
Consolidated cash and cash equivalents were ¥3.95 trillion ($27.29 billion) as of Sep 30, 2022. Long-term debt was ¥4.77 trillion ($32.96 billion).
Honda projects fiscal 2023 sales volumes from Motorcycle, Automobile and Power Products segments to be 18.43 million units, 4.1 million units and 5.66 million units in fiscal 2023, compared with the prior estimates of 18.56 million units, 4.2 million units and 5.66 million units, respectively.
For fiscal 2023, Honda forecasts revenues of ¥17.4 trillion, up from the prior guidance of ¥16.75 trillion. The fiscal 2023 sales view implies a 19.5% rise year over year. Operating profit is envisioned at ¥870 billion, up from ¥830 billion guided earlier. Pretax profit is forecast at ¥1,080 billion, up from the previous forecast of ¥1,040 billion.
The company’s R&D expenses for fiscal 2023 are likely to be ¥860 billion, suggesting a rise from ¥804 billion spent in fiscal 2022. Capex is envisioned at ¥550 billion, indicating a jump from ¥278.4 recorded in fiscal 2022.
For fiscal 2023, Honda expects a total annual dividend of ¥120 per share, including an interim and year-end dividend of ¥60 each. In a bid to enhance its capital structure, the company has decided to buy back shares up to 100 billion yen during the Aug 12, 2022 -Mar 31, 2023 period.
Toyota (TM - Free Report) posted fiscal second-quarter fiscal 2023 earnings of $2.30 per share, which lagged the consensus mark of $3.08. The bottom line also declined from the year-ago earnings of $4.09 a share. Consolidated revenues came in at $66,768 million, beating the consensus mark of $63,078 million but contracting 2.5% year over year.
For fiscal 2023, Toyota projects consolidated vehicle sales of 8.8 million, indicating an increase from 8.23 million units sold in fiscal 2022. Fiscal 2023 sales are expected to total ¥36 trillion, implying an increase from ¥31.4 trillion recorded in fiscal 2022 and higher than the prior view of ¥34.5 trillion. Operating income is projected to be ¥2.4 trillion, indicating a decline of 19.8% year over year. Pretax profit is estimated at ¥3.34 trillion, down from ¥4 trillion generated in fiscal 2022 but higher than the previous projection of ¥3.27 trillion.
General Motors (GM - Free Report) reported third-quarter 2022 adjusted earnings of $2.25 per share, surpassing the Zacks Consensus Estimate of $1.89. The bottom line surged 48% from the year-ago quarter's earnings of $1.52 per share. Revenues of $41,889 million beat the Zacks Consensus Estimate of $41,833.3 million. The top line soared 56.4% from the year-ago figure of $26,779 million.
For 2022, General Motors' full-year net income projection was reiterated in the range of $9.6-$11.2 billion. The adjusted EBIT forecast also remained unchanged in the range of $13.0 billion to $15.0 billion. The company continues to expect adjusted EPS in the band of $6.5-$7.5. The adjusted automotive free cash flow of $7 billion to $9 billion was also retained.
Ford (F - Free Report) reported adjusted earnings of 30 cents per share for third-quarter 2022, missing the Zacks Consensus Estimate of 31 cents. The bottom line declined 41.2% from the year-ago quarter's earnings of 51 cents. The company's consolidated third-quarter revenues came in at $39.4 billion, rising 10% year over year. Ford Automotive revenues were up 12% year over year to $37.2 billion but lagged the Zacks Consensus Estimate of $38.6 billion.
Ford's 2022 projections have been revised. Adjusted EBIT for 2022 is now estimated to be around $11.5 billion instead of the prior guided range of $11.5-$12.5 billion. Adjusted FCF is envisioned in the range of $9.5 billion-$10 billion for 2022, up from the prior range of $5.5-6.5 billion. The company envisions 10% growth in vehicle wholesale volumes for 2022. However, it anticipates headwinds from commodity prices and other inflationary costs to the tune of $9 billion for 2022.
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Honda (HMC) Q2 Earnings Miss, FY23 Sales & Profit View Up
Honda (HMC - Free Report) reported earnings of 80 cents per share for second-quarter fiscal 2023, lagging the Zacks Consensus Estimate of 91 cents. The bottom line also fell from the year-ago profit of 88 cents per share. Quarterly revenues totaled $30,824.4 million, topping the Zacks Consensus Estimate of $29,653.6 million. The top line, however, inched down from $30,925.2 million recorded in the year-ago period.
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, which ended on Sep 30, 2022, revenues from the Automobile segment increased 22.6% year over year to ¥2.67 trillion ($19.37 billion). The segment registered an operating profit of ¥25.3 billion ($183.2 million), plummeting 45.4% on a year-over-year basis.
Revenues from the Motorcycle segment came in at ¥736.6 billion ($5.33 billion), up 45.7% year over year. The unit’s operating profit came in at ¥127 billion ($919.2 million), jumping 88.2% year over year.
Revenues from the Financial Services segment totaled ¥779 billion ($5.64 billion), up 15.2% year on year. The unit’s operating profit, however, decreased 12.2% year over year to ¥74.2 billion ($537.6 million).
Revenues from the Power Product and Other Businesses came in at ¥117 billion ($847.5 million), up 18.8% year over year. The segment incurred an operating income of ¥4.7 billion ($34.29 million), skyrocketing from ¥532 million generated in the year-ago period.
Financials & FY23 View
Consolidated cash and cash equivalents were ¥3.95 trillion ($27.29 billion) as of Sep 30, 2022. Long-term debt was ¥4.77 trillion ($32.96 billion).
Honda projects fiscal 2023 sales volumes from Motorcycle, Automobile and Power Products segments to be 18.43 million units, 4.1 million units and 5.66 million units in fiscal 2023, compared with the prior estimates of 18.56 million units, 4.2 million units and 5.66 million units, respectively.
For fiscal 2023, Honda forecasts revenues of ¥17.4 trillion, up from the prior guidance of ¥16.75 trillion. The fiscal 2023 sales view implies a 19.5% rise year over year. Operating profit is envisioned at ¥870 billion, up from ¥830 billion guided earlier. Pretax profit is forecast at ¥1,080 billion, up from the previous forecast of ¥1,040 billion.
The company’s R&D expenses for fiscal 2023 are likely to be ¥860 billion, suggesting a rise from ¥804 billion spent in fiscal 2022. Capex is envisioned at ¥550 billion, indicating a jump from ¥278.4 recorded in fiscal 2022.
For fiscal 2023, Honda expects a total annual dividend of ¥120 per share, including an interim and year-end dividend of ¥60 each. In a bid to enhance its capital structure, the company has decided to buy back shares up to 100 billion yen during the Aug 12, 2022 -Mar 31, 2023 period.
Honda currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarterly Releases of Other Legacy Automakers
Toyota (TM - Free Report) posted fiscal second-quarter fiscal 2023 earnings of $2.30 per share, which lagged the consensus mark of $3.08. The bottom line also declined from the year-ago earnings of $4.09 a share. Consolidated revenues came in at $66,768 million, beating the consensus mark of $63,078 million but contracting 2.5% year over year.
For fiscal 2023, Toyota projects consolidated vehicle sales of 8.8 million, indicating an increase from 8.23 million units sold in fiscal 2022. Fiscal 2023 sales are expected to total ¥36 trillion, implying an increase from ¥31.4 trillion recorded in fiscal 2022 and higher than the prior view of ¥34.5 trillion. Operating income is projected to be ¥2.4 trillion, indicating a decline of 19.8% year over year. Pretax profit is estimated at ¥3.34 trillion, down from ¥4 trillion generated in fiscal 2022 but higher than the previous projection of ¥3.27 trillion.
General Motors (GM - Free Report) reported third-quarter 2022 adjusted earnings of $2.25 per share, surpassing the Zacks Consensus Estimate of $1.89. The bottom line surged 48% from the year-ago quarter's earnings of $1.52 per share. Revenues of $41,889 million beat the Zacks Consensus Estimate of $41,833.3 million. The top line soared 56.4% from the year-ago figure of $26,779 million.
For 2022, General Motors' full-year net income projection was reiterated in the range of $9.6-$11.2 billion. The adjusted EBIT forecast also remained unchanged in the range of $13.0 billion to $15.0 billion. The company continues to expect adjusted EPS in the band of $6.5-$7.5. The adjusted automotive free cash flow of $7 billion to $9 billion was also retained.
Ford (F - Free Report) reported adjusted earnings of 30 cents per share for third-quarter 2022, missing the Zacks Consensus Estimate of 31 cents. The bottom line declined 41.2% from the year-ago quarter's earnings of 51 cents. The company's consolidated third-quarter revenues came in at $39.4 billion, rising 10% year over year. Ford Automotive revenues were up 12% year over year to $37.2 billion but lagged the Zacks Consensus Estimate of $38.6 billion.
Ford's 2022 projections have been revised. Adjusted EBIT for 2022 is now estimated to be around $11.5 billion instead of the prior guided range of $11.5-$12.5 billion. Adjusted FCF is envisioned in the range of $9.5 billion-$10 billion for 2022, up from the prior range of $5.5-6.5 billion. The company envisions 10% growth in vehicle wholesale volumes for 2022. However, it anticipates headwinds from commodity prices and other inflationary costs to the tune of $9 billion for 2022.