We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honda Motor Co., Ltd. (HMC - Free Report) reported consolidated income of ¥570.2 billion or ¥318.50 per share ($2.82 per ADR) in the third quarter of fiscal 2018 (ended Dec 31, 2017), up ¥224.83 from the year-ago period. The Zacks Consensus Estimate for earnings per share during the quarter was 78 cents.
Consolidated sales revenues increased 13% year over year to ¥3.96 trillion ($35.06 billion). The figure surpassed the Zacks Consensus Estimate of $33.1 billion. The year-over-year increase can be attributed to higher revenues in all business operations.
Consolidated operating profit came in at ¥284.5 billion, reflecting an increase of 37% from the prior-year quarter. The rise was due to an increase in sales volume and model mix, which were offset by a rise in selling, general and administrative (SG&A) expenses.
Segment Performance
For the three months ended Dec 31, 2017, sales revenues in the Automobile segment increased 11.7% to ¥2.9 trillion. During the quarter, unit sales increased from 1.31-1.34 million vehicles. The Motorcycle segment increased 18.7% to ¥499.1 million whereas unit sales increased from 4.52-4.87 million vehicles.
In the quarter ended Dec 31, 2017, the Financial Services segment increased 15.7% to ¥527.1 million ($46.5 billion). During the quarter, unit sales increased from 9.64-9.87 million vehicles. The Power Product & Other segment was up 16.4% to ¥93.4 million whereas unit sales increased from 1.18-1.20 million vehicles.
Financial Position
Consolidated cash and cash equivalents were ¥2.21 trillion as of Dec 31, 2017, up from ¥2.11 trillion as of Mar 31, 2017.
Guidance
For fiscal 2018 (ending Mar 31, 2018), Honda expects revenues to improve 8.6% to ¥15.2 trillion. Operating income is likely to decline 7.8% to ¥775 billion. Profit before income taxes is projected to rise 3.8% to ¥1.05 trillion.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Image: Bigstock
Honda's (HMC) Q3 Earnings Rise Y/Y, Revenues Beat Estimates
Honda Motor Co., Ltd. (HMC - Free Report) reported consolidated income of ¥570.2 billion or ¥318.50 per share ($2.82 per ADR) in the third quarter of fiscal 2018 (ended Dec 31, 2017), up ¥224.83 from the year-ago period. The Zacks Consensus Estimate for earnings per share during the quarter was 78 cents.
Consolidated sales revenues increased 13% year over year to ¥3.96 trillion ($35.06 billion). The figure surpassed the Zacks Consensus Estimate of $33.1 billion. The year-over-year increase can be attributed to higher revenues in all business operations.
Consolidated operating profit came in at ¥284.5 billion, reflecting an increase of 37% from the prior-year quarter. The rise was due to an increase in sales volume and model mix, which were offset by a rise in selling, general and administrative (SG&A) expenses.
Segment Performance
For the three months ended Dec 31, 2017, sales revenues in the Automobile segment increased 11.7% to ¥2.9 trillion. During the quarter, unit sales increased from 1.31-1.34 million vehicles. The Motorcycle segment increased 18.7% to ¥499.1 million whereas unit sales increased from 4.52-4.87 million vehicles.
In the quarter ended Dec 31, 2017, the Financial Services segment increased 15.7% to ¥527.1 million ($46.5 billion). During the quarter, unit sales increased from 9.64-9.87 million vehicles. The Power Product & Other segment was up 16.4% to ¥93.4 million whereas unit sales increased from 1.18-1.20 million vehicles.
Financial Position
Consolidated cash and cash equivalents were ¥2.21 trillion as of Dec 31, 2017, up from ¥2.11 trillion as of Mar 31, 2017.
Guidance
For fiscal 2018 (ending Mar 31, 2018), Honda expects revenues to improve 8.6% to ¥15.2 trillion. Operating income is likely to decline 7.8% to ¥775 billion. Profit before income taxes is projected to rise 3.8% to ¥1.05 trillion.
Zacks Rank & Key Picks
Honda has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Daimler A.G. and Volkswagen A.G. , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have surged 28.2% in the last six months.
Daimler has an expected long-term growth rate of 2.8%. In the last six months, shares of the company have rallied 26.3%.
Volkswagen has an expected long-term growth rate of 18.7%. The stock has gained 40.5% in the last three months.
Honda Motor Company, Ltd. Price, Consensus and EPS Surprise
Honda Motor Company, Ltd. Price, Consensus and EPS Surprise | Honda Motor Company, Ltd. Quote
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks >>