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Nissan (NSANY) Earnings Surpass Estimates in Q2, Decline Y/Y

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Nissan Motor Co. (NSANY - Free Report) delivered adjusted earnings per share (EPS) of 29 cents in second-quarter fiscal 2019, beating the Zacks Consensus Estimate of 12 cents. However, the bottom line declined from the year-ago quarter’s 63 cents.

The company’s revenues declined 2.93% year over year to $24.5 billion and missed the Zacks Consensus Estimate of $26.2 billion. Operating income fell year over year to $279.62 million.

Nissan Motor Co. Price, Consensus and EPS Surprise

 

Segmental Performance

Revenues at the Automobile segment fell 6.8% year over year to $22.3 billion in the reported quarter. Operating loss for the segment was $315 million.

Revenues at the Sales Financing segment fell 15.2% to $2.38 billion from the prior-year figure. Operating profit declined 6.94% to $574.8 million in second-quarter fiscal 2019.

Financials

Nissan had $10 billion of cash and cash equivalents as of Sep 30, 2019, compared with $11 billion as of Mar 31, 2019. It had long-term debt of $22.2 billion as of Sep 30, 2019, reflecting a decline from $22.9 billion as of Mar 31, 2019. The debt-to-capital ratio was 63.45%, as of Sep 30, 2019.

At the end of second-quarter fiscal 2019, the company’s cash flow from operations was $5.38 billion, up 11.3% from second-quarter 2018.

Dividend

Nissan’s board of directors announced a quarterly dividend of 9 cents per share payable on Nov 27, 2019

Guidance

For 2019, the Zacks Rank #3 (Hold) firm projects consolidated revenues of ¥10.6 billion, suggesting an 8.4% drop from the prior-year figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Operating income is estimated at ¥150 million, indicating a fall of 52.9% from 2018 levels. EPS of ¥28.11 is projected for 2019.

Earnings Roundup of Other Auto Giants

General Motors (GM - Free Report) , Ford (F - Free Report) and Honda Motor (HMC - Free Report) also beat profit expectations in their last quarterly release.

General Motors posted adjusted EPS of $1.72 in third-quarter 2019, beating the Zacks Consensus Estimate of $1.18. Revenues of $35.4 billion surpassed the Zacks Consensus Estimate of $34.2 billion.

Ford delivered third-quarter 2019 adjusted EPS of 34 cents, beating the Zacks Consensus Estimate of 26 cents. Revenues of $33,931 million trumped the consensus estimate of $33,818 million.

Honda Motor posted earnings of $1.04 per ADR, surpassing the consensus mark of 91 cents in second-quarter fiscal 2020. The firm also reported revenues of $34,763 million, beating the Zacks Consensus Estimate of $34,286 million.

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