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Honda (HMC) Q2 Earnings Top Estimates, FY24 Profit View Raised
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Honda (HMC - Free Report) reported earnings of $1.07 per share for second-quarter fiscal 2024, surpassing the Zacks Consensus Estimate of 69 cents. The bottom line also jumped from the year-ago profit of 80 cents per share. Quarterly revenues totaled $34,497 million, beating the Zacks Consensus Estimate of $32,116 million. The top line also increased from $30,824 million recorded in the year-ago period.
The company implemented a 3-for-1 stock split on Sep 30. 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 ¥87/share and ¥174/share, respectively.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period, which ended on Sep 30, 2023, revenues from the Automobile segment increased 24% year over year to ¥3.3 trillion ($22.94 billion) and outpaced our projection of ¥2.8 trillion. The segment registered an operating profit of ¥124.4 billion ($861 million), jumping from ¥25.3 billion in the corresponding quarter of fiscal 2023. The results were primarily aided by strong sales in the United States, thanks to high demand, production recovery and the introduction of new models.
Revenues from the Motorcycle segment came in at ¥815.6 billion ($5.64 billion), rising 10.7% year over year and topping our estimate of ¥743.4 billion, courtesy of high demand in Indonesia and Europe. However, the unit’s operating profit came in at ¥109.8 billion ($760 million), down 13.4% year over year.
Revenues from the Financial Services segment totaled ¥804.2 billion ($5.56 billion), up 3.2% year on year. Revenues beat our prediction of ¥740.6 billion. The unit’s operating profit decreased 9.1% year over year to ¥67.4 billion ($467 million).
Revenues from the Power Product and Other Businesses came in at ¥105.1 billion ($727 million), down 10% year over year and missing our forecast of ¥109.8 billion. The segment registered an operating profit of ¥390 million ($2.70 million), significantly lower than ¥4.7 billion generated in the year-ago period.
Financials & FY24 View
Consolidated cash and cash equivalents were ¥4.44 trillion ($29.72 billion) as of Sep 30, 2023. Long-term debt was ¥5.25 trillion ($35.18 billion) as of Sep 30, up from ¥4.37 trillion as of Mar 31, 2023.
Honda projects fiscal 2024 sales volumes from Motorcycle, Automobile and Power Products segments to be 18.8 million units, 4.1 million units and 3.85 million units, suggesting a decline from the previous outlook of 19.18 million units, 4.35 million units and 4.75 million units, respectively. Nonetheless, the revised forecast implies growth of 0.2% and 11.2% year over year in Motorcycles and Automobiles units, respectively. However, Power Product Unit sales are likely to decline 31.8% year over year in fiscal 2024, according to the revised estimates.
For fiscal 2024, Honda forecasts revenues of ¥20 trillion, up from ¥18.2 trillion guided earlier. The revised estimate indicates an uptick of 18.3% year over year. Operating profit is envisioned at ¥1.2 trillion, up from the previous projection of ¥1 trillion and implying growth of 53.7% year over year. Pretax profit is forecast to be ¥1,395 billion, up from the prior guidance of ¥1,185 billion and suggesting an increase of 58.6% year over year.
Honda expects fiscal 2024 R&D expenses and capex to be $990 billion and $440 billion, respectively.
General Motors (GM - Free Report) reported third-quarter 2023 results on Oct 24. It posted adjusted earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $1.84 on higher-than-expected profit from GMNA, GMI and Financial segments. The bottom line also increased from the year-ago quarter’s earnings of $2.25 per share. Revenues of $44,131 million beat the Zacks Consensus Estimate of $43,296 million and increased from $41,889 million recorded in the year-ago period.
General Motors had cash and cash equivalents of $25,224 million as of Sep 30, 2023, compared with $19,153 million as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15,962 million compared with $15,885 million as of Dec 31, 2022.
Ford (F - Free Report) reported third-quarter 2023 results on Oct 26. It reported adjusted earnings of 39 cents per share for third-quarter 2023, which missed the Zacks Consensus Estimate of 40 cents but increased from 30 cents recorded in the year-ago quarter. The company’s consolidated third-quarter revenues came in at $43,801 million, rising 11.2% year over year.
Ford reported an adjusted free cash flow of $1,225 million for the quarter. It had cash and cash equivalents of $26,427 million as of Sep 30, 2023. Long-term debt, excluding Ford Credit, totaled $19.33 billion at the end of the third quarter of 2023.
Toyota (TM - Free Report) posted second-quarter fiscal 2024 results on Nov 1. Adjusted earnings of $6.54 per share handily surpassed the consensus mark of $3.34 and surged from the year-ago earnings of $2.30 a share. Consolidated revenues came in at $79,140 million, beating the consensus mark of $72,693 million and rising from $66,768 million in the year-ago quarter.
Toyota had cash and cash equivalents of ¥7.9 trillion ($52.89 billion) as of Sep 30, 2023. Long-term debt was ¥19.33 trillion ($129.41 billion), up from ¥17.1 trillion as of Mar 31, 2023. For fiscal 2024, Toyota projects vehicle sales of 9.6 million units, indicating an increase from 8.82 million units sold in fiscal 2023. Fiscal 2024 sales are expected to total ¥43 trillion, up from ¥38 trillion guided earlier and implying an increase from ¥37.15 trillion recorded in fiscal 2023.
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Honda (HMC) Q2 Earnings Top Estimates, FY24 Profit View Raised
Honda (HMC - Free Report) reported earnings of $1.07 per share for second-quarter fiscal 2024, surpassing the Zacks Consensus Estimate of 69 cents. The bottom line also jumped from the year-ago profit of 80 cents per share. Quarterly revenues totaled $34,497 million, beating the Zacks Consensus Estimate of $32,116 million. The top line also increased from $30,824 million recorded in the year-ago period.
The company implemented a 3-for-1 stock split on Sep 30. 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 ¥87/share and ¥174/share, respectively.
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, 2023, revenues from the Automobile segment increased 24% year over year to ¥3.3 trillion ($22.94 billion) and outpaced our projection of ¥2.8 trillion. The segment registered an operating profit of ¥124.4 billion ($861 million), jumping from ¥25.3 billion in the corresponding quarter of fiscal 2023. The results were primarily aided by strong sales in the United States, thanks to high demand, production recovery and the introduction of new models.
Revenues from the Motorcycle segment came in at ¥815.6 billion ($5.64 billion), rising 10.7% year over year and topping our estimate of ¥743.4 billion, courtesy of high demand in Indonesia and Europe. However, the unit’s operating profit came in at ¥109.8 billion ($760 million), down 13.4% year over year.
Revenues from the Financial Services segment totaled ¥804.2 billion ($5.56 billion), up 3.2% year on year. Revenues beat our prediction of ¥740.6 billion. The unit’s operating profit decreased 9.1% year over year to ¥67.4 billion ($467 million).
Revenues from the Power Product and Other Businesses came in at ¥105.1 billion ($727 million), down 10% year over year and missing our forecast of ¥109.8 billion. The segment registered an operating profit of ¥390 million ($2.70 million), significantly lower than ¥4.7 billion generated in the year-ago period.
Financials & FY24 View
Consolidated cash and cash equivalents were ¥4.44 trillion ($29.72 billion) as of Sep 30, 2023. Long-term debt was ¥5.25 trillion ($35.18 billion) as of Sep 30, up from ¥4.37 trillion as of Mar 31, 2023.
Honda projects fiscal 2024 sales volumes from Motorcycle, Automobile and Power Products segments to be 18.8 million units, 4.1 million units and 3.85 million units, suggesting a decline from the previous outlook of 19.18 million units, 4.35 million units and 4.75 million units, respectively. Nonetheless, the revised forecast implies growth of 0.2% and 11.2% year over year in Motorcycles and Automobiles units, respectively. However, Power Product Unit sales are likely to decline 31.8% year over year in fiscal 2024, according to the revised estimates.
For fiscal 2024, Honda forecasts revenues of ¥20 trillion, up from ¥18.2 trillion guided earlier. The revised estimate indicates an uptick of 18.3% year over year. Operating profit is envisioned at ¥1.2 trillion, up from the previous projection of ¥1 trillion and implying growth of 53.7% year over year. Pretax profit is forecast to be ¥1,395 billion, up from the prior guidance of ¥1,185 billion and suggesting an increase of 58.6% year over year.
Honda expects fiscal 2024 R&D expenses and capex to be $990 billion and $440 billion, respectively.
The stock 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 third-quarter 2023 results on Oct 24. It posted adjusted earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $1.84 on higher-than-expected profit from GMNA, GMI and Financial segments. The bottom line also increased from the year-ago quarter’s earnings of $2.25 per share. Revenues of $44,131 million beat the Zacks Consensus Estimate of $43,296 million and increased from $41,889 million recorded in the year-ago period.
General Motors had cash and cash equivalents of $25,224 million as of Sep 30, 2023, compared with $19,153 million as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15,962 million compared with $15,885 million as of Dec 31, 2022.
Ford (F - Free Report) reported third-quarter 2023 results on Oct 26. It reported adjusted earnings of 39 cents per share for third-quarter 2023, which missed the Zacks Consensus Estimate of 40 cents but increased from 30 cents recorded in the year-ago quarter. The company’s consolidated third-quarter revenues came in at $43,801 million, rising 11.2% year over year.
Ford reported an adjusted free cash flow of $1,225 million for the quarter. It had cash and cash equivalents of $26,427 million as of Sep 30, 2023. Long-term debt, excluding Ford Credit, totaled $19.33 billion at the end of the third quarter of 2023.
Toyota (TM - Free Report) posted second-quarter fiscal 2024 results on Nov 1. Adjusted earnings of $6.54 per share handily surpassed the consensus mark of $3.34 and surged from the year-ago earnings of $2.30 a share. Consolidated revenues came in at $79,140 million, beating the consensus mark of $72,693 million and rising from $66,768 million in the year-ago quarter.
Toyota had cash and cash equivalents of ¥7.9 trillion ($52.89 billion) as of Sep 30, 2023. Long-term debt was ¥19.33 trillion ($129.41 billion), up from ¥17.1 trillion as of Mar 31, 2023. For fiscal 2024, Toyota projects vehicle sales of 9.6 million units, indicating an increase from 8.82 million units sold in fiscal 2023. Fiscal 2024 sales are expected to total ¥43 trillion, up from ¥38 trillion guided earlier and implying an increase from ¥37.15 trillion recorded in fiscal 2023.