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Honda (HMC) to Report Q1 Earnings: What's in the Offing?
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Honda Motor Co. (HMC - Free Report) is slated to release first-quarter fiscal 2024 results on Aug 9, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 99 cents and $33.57 billion, respectively.
For the fiscal first quarter, the consensus estimate for HMC’s earnings per share has moved north by 10 cents in the past 60 days. Its bottom-line estimates imply an increase of 47.8% from the year-ago reported number. Over the trailing four quarters, HMC surpassed the consensus estimate on one occasion and missed in the remaining three, the average negative surprise being 9.08%. This is depicted in the graph below:
In fiscal fourth-quarter 2023, Honda reported quarterly earnings of 51 cents per share, missing the Zacks Consensus Estimate of 61 cents. The bottom line also declined from 63 cents per share, as reported a year ago. The company posted revenues of $33,154 million in the quarter, lagging the Zacks Consensus Estimate of $34,494 million.
Earnings Whispers
Our proven model predicts an earnings beat for Honda for first-quarter fiscal 2024, as it has the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here.
Earnings ESP: HMC has an Earnings ESP of +9.65%. This is because the Most Accurate Estimate is pegged 9 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Things to Note
As part of the global restructuring move, Honda has been taking steps to control costs and optimize production capacity. This will enable it to lower fixed costs and vehicle production expenses, thereby generating savings that can be directed toward more profitable opportunities and revving up profits. For fiscal 2024, Honda forecasts revenues of ¥18.2 trillion, up 7.6% year over year. Cost efficiency and an upbeat outlook for the current year are likely to have benefited Honda in the quarter under review.
Here’s a brief look at the revenues and operating income estimates for Honda’s segments.
For the first quarter, our estimate for quarterly sales of the Motorcycle Business segment is pegged at ¥722,502.3 million, suggesting a rise from ¥676,050 million reported in first-quarter 2023. Operating income for the segment is expected to be ¥126,133 million, suggesting a rise from ¥97,829 million reported in first-quarter 2023.
Our estimate for quarterly sales of the Automobile Business segment is pegged at ¥2,625 billion, suggesting a rise from ¥2,291.5 billion reported in first-quarter 2023. Operating income for the segment is expected to be ¥38,090 million, suggesting a decline from ¥38,262 million reported in first-quarter 2023.
We expect first-quarter sales for Financial Services Business segment to be around ¥736,305.9 million, suggesting a decline from ¥749,384 million reported in first-quarter 2023. Operating income for the segment is estimated to be ¥58,232 million, suggesting a decline from ¥78,801 million reported in first-quarter 2023.
Earnings Whispers for Other Auto Companies
Lucid Group (LCID - Free Report) is scheduled to report second-quarter earnings on Aug 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of 35 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
LCID surpassed earnings estimates in one out of the trailing four quarters and missed thrice, the average negative surprise being 2.26%.
Rivian (RIVN - Free Report) is scheduled to report second-quarter earnings on Aug 8. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of $1.41 per share. The company has an Earnings ESP of +0.75% and a Zacks Rank #2.
RIVN surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 6.08%.
Nikola (NKLA - Free Report) is scheduled to report first-quarter earnings on Aug 4. The Zacks Consensus Estimate for the to-be-reported quarter’s loss is pinned at 24 cents per share. The company has an Earnings ESP of 0.00%.
NKLA carries a Zacks Rank #2. NKLA surpassed earnings estimates in all the trailing four quarters in fiscal 2022, the average surprise being 15.58%.
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Honda (HMC) to Report Q1 Earnings: What's in the Offing?
Honda Motor Co. (HMC - Free Report) is slated to release first-quarter fiscal 2024 results on Aug 9, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 99 cents and $33.57 billion, respectively.
For the fiscal first quarter, the consensus estimate for HMC’s earnings per share has moved north by 10 cents in the past 60 days. Its bottom-line estimates imply an increase of 47.8% from the year-ago reported number. Over the trailing four quarters, HMC surpassed the consensus estimate on one occasion and missed in the remaining three, the average negative surprise being 9.08%. This is depicted in the graph below:
Honda Motor Co., Ltd. Price and EPS Surprise
Honda Motor Co., Ltd. price-eps-surprise | Honda Motor Co., Ltd. Quote
Q4 Highlights
In fiscal fourth-quarter 2023, Honda reported quarterly earnings of 51 cents per share, missing the Zacks Consensus Estimate of 61 cents. The bottom line also declined from 63 cents per share, as reported a year ago. The company posted revenues of $33,154 million in the quarter, lagging the Zacks Consensus Estimate of $34,494 million.
Earnings Whispers
Our proven model predicts an earnings beat for Honda for first-quarter fiscal 2024, as it has the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here.
Earnings ESP: HMC has an Earnings ESP of +9.65%. This is because the Most Accurate Estimate is pegged 9 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Things to Note
As part of the global restructuring move, Honda has been taking steps to control costs and optimize production capacity. This will enable it to lower fixed costs and vehicle production expenses, thereby generating savings that can be directed toward more profitable opportunities and revving up profits. For fiscal 2024, Honda forecasts revenues of ¥18.2 trillion, up 7.6% year over year. Cost efficiency and an upbeat outlook for the current year are likely to have benefited Honda in the quarter under review.
Here’s a brief look at the revenues and operating income estimates for Honda’s segments.
For the first quarter, our estimate for quarterly sales of the Motorcycle Business segment is pegged at ¥722,502.3 million, suggesting a rise from ¥676,050 million reported in first-quarter 2023. Operating income for the segment is expected to be ¥126,133 million, suggesting a rise from ¥97,829 million reported in first-quarter 2023.
Our estimate for quarterly sales of the Automobile Business segment is pegged at ¥2,625 billion, suggesting a rise from ¥2,291.5 billion reported in first-quarter 2023. Operating income for the segment is expected to be ¥38,090 million, suggesting a decline from ¥38,262 million reported in first-quarter 2023.
We expect first-quarter sales for Financial Services Business segment to be around ¥736,305.9 million, suggesting a decline from ¥749,384 million reported in first-quarter 2023. Operating income for the segment is estimated to be ¥58,232 million, suggesting a decline from ¥78,801 million reported in first-quarter 2023.
Earnings Whispers for Other Auto Companies
Lucid Group (LCID - Free Report) is scheduled to report second-quarter earnings on Aug 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of 35 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
LCID surpassed earnings estimates in one out of the trailing four quarters and missed thrice, the average negative surprise being 2.26%.
Rivian (RIVN - Free Report) is scheduled to report second-quarter earnings on Aug 8. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of $1.41 per share. The company has an Earnings ESP of +0.75% and a Zacks Rank #2.
RIVN surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 6.08%.
Nikola (NKLA - Free Report) is scheduled to report first-quarter earnings on Aug 4. The Zacks Consensus Estimate for the to-be-reported quarter’s loss is pinned at 24 cents per share. The company has an Earnings ESP of 0.00%.
NKLA carries a Zacks Rank #2. NKLA surpassed earnings estimates in all the trailing four quarters in fiscal 2022, the average surprise being 15.58%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.