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Honda (HMC) Beats on Q1 Earnings, Expects Higher FY24 Sales
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Honda (HMC - Free Report) reported earnings of $1.60 per share for first-quarter fiscal 2024, surpassing the Zacks Consensus Estimate of 99 cents. The bottom line also jumped from the year-ago profit of 67 cents per share. Quarterly revenues totaled $33,698 million, beating the Zacks Consensus Estimate of $33,569 million. The top line also increased from $29,560 million recorded in the year-ago period.
The company announced a 3-for-1 stock split approved by the board, scheduled to take effect on Sep 30, with the aim of expanding the investor base by reducing the stock price. Based on the number of shares prior to the stock split, the year-end dividend and the total annual dividend for fiscal 2024 are expected to be ¥75/share and ¥150/share.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period, which ended on Jun 30, 2023, revenues from the Automobile segment increased 30.1% year over year to ¥3.03 trillion ($22.09 billion) and outpaced our projection of ¥2.63 trillion. The segment registered an operating profit of ¥177 billion ($1.29 billion), jumping from ¥38.3 billion in the corresponding quarter of fiscal 2023.
Revenues from the Motorcycle segment came in at ¥757 billion ($5.51 billion), rising 11.9% year over year and topping our estimate of ¥722.5 billion. The unit’s operating profit came in at ¥143.5 billion ($1.04 billion), up 46.7% year over year.
Revenues from the Financial Services segment totaled ¥773.6 billion ($5.64 billion), up 0.3% year on year. Revenues beat our prediction of ¥736.3 billion. The unit’s operating profit decreased 11.7% year over year to ¥69.5 billion ($506.6 million).
Revenues from the Power Product and Other Businesses came in at ¥109.2 billion ($796 million), rising 6.8% year over year but missing our forecast of ¥112 billion. The segment registered an operating profit of ¥4.4 billion ($32.19 million), lower than ¥7.3 billion generated in the year-ago period.
Financials & FY24 View
Consolidated cash and cash equivalents were ¥4.08 trillion ($28.25 billion) as of Jun 30, 2023. Long-term debt was ¥4.89 trillion ($33.85 billion) as of Jun 30, up from ¥4.37 trillion as of Mar 31, 2023.
Honda projects sales volumes from Motorcycle, Automobile and Power Products segments to be 19.18 million units, 4.35 million units and 4.75 million units in fiscal 2024, compared with fiscal 2023 levels of 18.75 million units, 3.68 million units and 5.64 million units, respectively.
For fiscal 2024, Honda forecasts revenues of ¥18.2 trillion, indicating an uptick of 7.6% year over year. Operating profit is envisioned at ¥1 trillion, implying growth of 28.1% year over year. Pretax profit is forecast at ¥1,185 billion, suggesting an increase of 34.7% year over year.
General Motors (GM - Free Report) reported second-quarter 2023 results on Jul 25. It posted adjusted earnings of $1.91 per share, which surpassed the Zacks Consensus Estimate of $1.73. The outperformance can be primarily attributed to better-than-expected results from the North America market. The bottom line also rose from the year-ago quarter’s earnings of $1.14 per share. Revenues of $44,746 million beat the Zacks Consensus Estimate of $42,478 million and increased from $35,759 million recorded in the year-ago period.
General Motors had cash and cash equivalents of $23,074 million as of Jun 30, 2023, compared with $19,153 million as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15,976 million compared with $15,885 million as of Dec 31, 2022.
Ford (F - Free Report) reported second-quarter 2023 results on Jul 27. It posted adjusted earnings of 72 cents per share for second-quarter 2023, which beat the Zacks Consensus Estimate of 51 cents and increased from 68 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated second-quarter revenues came in at $44,954 million, rising 11.8% year over year.
Ford reported an adjusted free cash flow of $2,919 million during the quarter. It had cash and cash equivalents of $26,406 million as of Jun 30, 2023. Long-term debt, excluding Ford Credit, totaled $19.17 billion at the end of the second quarter of 2023.
Toyota (TM - Free Report) reported first-quarter fiscal 2024 results on Aug 1. It posted earnings of $7.05 per share, which surpassed the consensus mark of $3.92 and increased from the year-ago earnings of $4.14 a share. Consolidated revenues came in at $76,847 million, beating the consensus mark of $69,983 million and rising from $65,543 million in the year-ago reported figure. High sales volume across all regions due to productivity improvement efforts and supply chain improvements led to outperformance.
Toyota had cash and cash equivalents of ¥7.9 trillion ($54.7 billion) as of Jun 30, 2023. Long-term debt was ¥18.24 trillion ($126.21 billion), up from ¥17.1 trillion as of Mar 31, 2023.
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Honda (HMC) Beats on Q1 Earnings, Expects Higher FY24 Sales
Honda (HMC - Free Report) reported earnings of $1.60 per share for first-quarter fiscal 2024, surpassing the Zacks Consensus Estimate of 99 cents. The bottom line also jumped from the year-ago profit of 67 cents per share. Quarterly revenues totaled $33,698 million, beating the Zacks Consensus Estimate of $33,569 million. The top line also increased from $29,560 million recorded in the year-ago period.
The company announced a 3-for-1 stock split approved by the board, scheduled to take effect on Sep 30, with the aim of expanding the investor base by reducing the stock price. Based on the number of shares prior to the stock split, the year-end dividend and the total annual dividend for fiscal 2024 are expected to be ¥75/share and ¥150/share.
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 Jun 30, 2023, revenues from the Automobile segment increased 30.1% year over year to ¥3.03 trillion ($22.09 billion) and outpaced our projection of ¥2.63 trillion. The segment registered an operating profit of ¥177 billion ($1.29 billion), jumping from ¥38.3 billion in the corresponding quarter of fiscal 2023.
Revenues from the Motorcycle segment came in at ¥757 billion ($5.51 billion), rising 11.9% year over year and topping our estimate of ¥722.5 billion. The unit’s operating profit came in at ¥143.5 billion ($1.04 billion), up 46.7% year over year.
Revenues from the Financial Services segment totaled ¥773.6 billion ($5.64 billion), up 0.3% year on year. Revenues beat our prediction of ¥736.3 billion. The unit’s operating profit decreased 11.7% year over year to ¥69.5 billion ($506.6 million).
Revenues from the Power Product and Other Businesses came in at ¥109.2 billion ($796 million), rising 6.8% year over year but missing our forecast of ¥112 billion. The segment registered an operating profit of ¥4.4 billion ($32.19 million), lower than ¥7.3 billion generated in the year-ago period.
Financials & FY24 View
Consolidated cash and cash equivalents were ¥4.08 trillion ($28.25 billion) as of Jun 30, 2023. Long-term debt was ¥4.89 trillion ($33.85 billion) as of Jun 30, up from ¥4.37 trillion as of Mar 31, 2023.
Honda projects sales volumes from Motorcycle, Automobile and Power Products segments to be 19.18 million units, 4.35 million units and 4.75 million units in fiscal 2024, compared with fiscal 2023 levels of 18.75 million units, 3.68 million units and 5.64 million units, respectively.
For fiscal 2024, Honda forecasts revenues of ¥18.2 trillion, indicating an uptick of 7.6% year over year. Operating profit is envisioned at ¥1 trillion, implying growth of 28.1% year over year. Pretax profit is forecast at ¥1,185 billion, suggesting an increase of 34.7% year over year.
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
General Motors (GM - Free Report) reported second-quarter 2023 results on Jul 25. It posted adjusted earnings of $1.91 per share, which surpassed the Zacks Consensus Estimate of $1.73. The outperformance can be primarily attributed to better-than-expected results from the North America market. The bottom line also rose from the year-ago quarter’s earnings of $1.14 per share. Revenues of $44,746 million beat the Zacks Consensus Estimate of $42,478 million and increased from $35,759 million recorded in the year-ago period.
General Motors had cash and cash equivalents of $23,074 million as of Jun 30, 2023, compared with $19,153 million as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15,976 million compared with $15,885 million as of Dec 31, 2022.
Ford (F - Free Report) reported second-quarter 2023 results on Jul 27. It posted adjusted earnings of 72 cents per share for second-quarter 2023, which beat the Zacks Consensus Estimate of 51 cents and increased from 68 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated second-quarter revenues came in at $44,954 million, rising 11.8% year over year.
Ford reported an adjusted free cash flow of $2,919 million during the quarter. It had cash and cash equivalents of $26,406 million as of Jun 30, 2023. Long-term debt, excluding Ford Credit, totaled $19.17 billion at the end of the second quarter of 2023.
Toyota (TM - Free Report) reported first-quarter fiscal 2024 results on Aug 1. It posted earnings of $7.05 per share, which surpassed the consensus mark of $3.92 and increased from the year-ago earnings of $4.14 a share. Consolidated revenues came in at $76,847 million, beating the consensus mark of $69,983 million and rising from $65,543 million in the year-ago reported figure. High sales volume across all regions due to productivity improvement efforts and supply chain improvements led to outperformance.
Toyota had cash and cash equivalents of ¥7.9 trillion ($54.7 billion) as of Jun 30, 2023. Long-term debt was ¥18.24 trillion ($126.21 billion), up from ¥17.1 trillion as of Mar 31, 2023.