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Honda (HMC) Q1 Earnings Top, Sales Miss Estimates, FY22 View Up
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Honda Motor (HMC - Free Report) reported earnings of $1.18 per ADR for first-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line also reversed the year-ago loss of 44 cents per share. However, quarterly revenues totaled $32,742 million, missing the Zacks Consensus Estimate of $33,858 million. Nonetheless, the top line surged 65.8%, year on year.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period ended Jun 30, 2021, revenues from the Automobile segment increased 79.4% year over year to ¥2.3 trillion ($20.6 billion). The segment registered an operating profit of ¥70.7 billion ($645.7 million), reversing the year-ago quarter’s loss of ¥195.9 billion. Increase in profit owing to changes in sales volume and model mix resulted in this upside.
Revenues from the Motorcycle segment came in at ¥518.2 billion ($4.7 billion), jumping 89% year over year. The unit’s operating profit came in at ¥80.7 billion ($737 million), up a whopping 620% year over year. Increase in profit owing to changes in sales volume and model mix drove this uptick.
Revenues from the Financial Services segment totaled ¥767.5 billion ($7 billion), climbing 32.6% year on year. The unit’s operating profit increased 28.8% year over year to ¥92.2 billion ($842.4 million). This upswing primarily resulted from the higher year-on-year used vehicles prices.
Revenues from the Life Creation and Other Business came in at ¥99.2 billion ($719.7 million), up 35.2% year over year. However, the segment incurred an operating loss of ¥391 million ($3.6 million) compared with the loss of ¥573 million posted in the corresponding period of the prior year. Changes in sales volume and model mix aided the results.
Dividend, Financials & Buyback
The Zacks Rank #3 (Hold) company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110 per share, which includes an interim and a year-end cash dividend of ¥55 per share each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated cash and cash equivalents were ¥2.5 trillion ($22.5 billion) as of Jun 30, 2021. Long-term debt was ¥4.5 trillion ($40.1 billion).
For the purpose of improved capital efficiency, the company plans to buy back up to 18 million shares or shares worth a maximum sum of ¥70 billion between the period Aug 5 and Dec 31, 2021.
Upbeat FY 2022 Outlook
For fiscal 2022, Honda — peers of which include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — forecasts sales and operating profit of ¥15.45 trillion and ¥780 billion, respectively, up from the earlier estimate of ¥15.2 trillion and ¥660 billion, respectively. Both the sales and operating profit projections indicate an upswing from the ¥13.2 trillion and ¥660 billion, respectively, recorded in fiscal 2021.
The company’s R&D expenses for fiscal 2022 are likely to be ¥840 billion, suggesting a rise from the ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating a decrease from the ¥321.2 billion spent in fiscal 2021.
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Honda (HMC) Q1 Earnings Top, Sales Miss Estimates, FY22 View Up
Honda Motor (HMC - Free Report) reported earnings of $1.18 per ADR for first-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line also reversed the year-ago loss of 44 cents per share. However, quarterly revenues totaled $32,742 million, missing the Zacks Consensus Estimate of $33,858 million. Nonetheless, the top line surged 65.8%, year on year.
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 ended Jun 30, 2021, revenues from the Automobile segment increased 79.4% year over year to ¥2.3 trillion ($20.6 billion). The segment registered an operating profit of ¥70.7 billion ($645.7 million), reversing the year-ago quarter’s loss of ¥195.9 billion. Increase in profit owing to changes in sales volume and model mix resulted in this upside.
Revenues from the Motorcycle segment came in at ¥518.2 billion ($4.7 billion), jumping 89% year over year. The unit’s operating profit came in at ¥80.7 billion ($737 million), up a whopping 620% year over year. Increase in profit owing to changes in sales volume and model mix drove this uptick.
Revenues from the Financial Services segment totaled ¥767.5 billion ($7 billion), climbing 32.6% year on year. The unit’s operating profit increased 28.8% year over year to ¥92.2 billion ($842.4 million). This upswing primarily resulted from the higher year-on-year used vehicles prices.
Revenues from the Life Creation and Other Business came in at ¥99.2 billion ($719.7 million), up 35.2% year over year. However, the segment incurred an operating loss of ¥391 million ($3.6 million) compared with the loss of ¥573 million posted in the corresponding period of the prior year. Changes in sales volume and model mix aided the results.
Dividend, Financials & Buyback
The Zacks Rank #3 (Hold) company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110 per share, which includes an interim and a year-end cash dividend of ¥55 per share each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated cash and cash equivalents were ¥2.5 trillion ($22.5 billion) as of Jun 30, 2021. Long-term debt was ¥4.5 trillion ($40.1 billion).
For the purpose of improved capital efficiency, the company plans to buy back up to 18 million shares or shares worth a maximum sum of ¥70 billion between the period Aug 5 and Dec 31, 2021.
Upbeat FY 2022 Outlook
For fiscal 2022, Honda — peers of which include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — forecasts sales and operating profit of ¥15.45 trillion and ¥780 billion, respectively, up from the earlier estimate of ¥15.2 trillion and ¥660 billion, respectively. Both the sales and operating profit projections indicate an upswing from the ¥13.2 trillion and ¥660 billion, respectively, recorded in fiscal 2021.
The company’s R&D expenses for fiscal 2022 are likely to be ¥840 billion, suggesting a rise from the ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating a decrease from the ¥321.2 billion spent in fiscal 2021.