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Honda Motor (HMC - Free Report) reported earnings of 88 per share for second-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line, however, fell from the year-ago profit of $1.31 per share. Quarterly revenues totaled $30,925 million, missing the Zacks Consensus Estimate of $31,188 million. The top line also slid 6.7% year on year.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period ended Sep 30, 2021, revenues from the Automobile segment decreased 11.5% year over year to ¥2.18 trillion ($19.82 billion) amid lower sales, particularly in North America. The segment registered an operating profit of ¥46.4 billion ($421.6 million), down 63% on a year-over-year basis due to chip crunch-related headwinds.
Revenues from the Motorcycle segment came in at ¥505.5 billion ($4.6 billion), up 2.5% year over year on the back of forex gains. The unit’s operating profit came in at ¥67.4 billion ($612.6 million), inching down 1.5% year over year. The decrease in profit stemmed from changes in sales volume and model mix.
Revenues from the Financial Services segment totaled ¥676.3 billion ($6.14 billion), up 1.5% year on year. The unit’s operating profit, however, decreased 9.3% year over year to ¥84.6 billion ($768.4 million).
Revenues from the Life Creation and Other Business came in at ¥98.5 billion ($894 million), up 13.4% year over year. The segment generated an operating profit of ¥532 million ($4.83 million) versus a loss of ¥4.2 billion posted in the corresponding period of the prior year.
Financials
The company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110, which includes an interim and a year-end cash dividend of ¥55 each. Consolidated cash and cash equivalents were ¥2.6 trillion ($23.5 billion) as of Sep 30, 2021. Long-term debt was ¥4.7 trillion ($41.9 billion).
Revised FY22 View
For fiscal 2022, Honda — whose peers include Toyota (TM - Free Report) , Mazda (MZDAY - Free Report) , and Nissan Motors (NSANY - Free Report) — forecasts sales and operating profit of ¥14.6 trillion and ¥660 billion, down from the earlier expectation of ¥15.4 trillion and ¥780 billion, respectively. Profit before taxes is envisioned at ¥860 billion, down from the previous projection of ¥1 trillion. The revised forecast also implies a 6% year-over-year decline.
The company’s R&D expenses for fiscal 2022 are likely to be ¥840 billion, suggesting a rise from ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating almost no change from ¥321.2 billion spent in fiscal 2021. Honda currently carries a Zacks Rank #5 (Strong Sell).
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Honda (HMC) Beats on Q3 Earnings, Trims Sales & Profit View
Honda Motor (HMC - Free Report) reported earnings of 88 per share for second-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line, however, fell from the year-ago profit of $1.31 per share. Quarterly revenues totaled $30,925 million, missing the Zacks Consensus Estimate of $31,188 million. The top line also slid 6.7% 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 Sep 30, 2021, revenues from the Automobile segment decreased 11.5% year over year to ¥2.18 trillion ($19.82 billion) amid lower sales, particularly in North America. The segment registered an operating profit of ¥46.4 billion ($421.6 million), down 63% on a year-over-year basis due to chip crunch-related headwinds.
Revenues from the Motorcycle segment came in at ¥505.5 billion ($4.6 billion), up 2.5% year over year on the back of forex gains. The unit’s operating profit came in at ¥67.4 billion ($612.6 million), inching down 1.5% year over year. The decrease in profit stemmed from changes in sales volume and model mix.
Revenues from the Financial Services segment totaled ¥676.3 billion ($6.14 billion), up 1.5% year on year. The unit’s operating profit, however, decreased 9.3% year over year to ¥84.6 billion ($768.4 million).
Revenues from the Life Creation and Other Business came in at ¥98.5 billion ($894 million), up 13.4% year over year. The segment generated an operating profit of ¥532 million ($4.83 million) versus a loss of ¥4.2 billion posted in the corresponding period of the prior year.
Financials
The company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110, which includes an interim and a year-end cash dividend of ¥55 each. Consolidated cash and cash equivalents were ¥2.6 trillion ($23.5 billion) as of Sep 30, 2021. Long-term debt was ¥4.7 trillion ($41.9 billion).
Revised FY22 View
For fiscal 2022, Honda — whose peers include Toyota (TM - Free Report) , Mazda (MZDAY - Free Report) , and Nissan Motors (NSANY - Free Report) — forecasts sales and operating profit of ¥14.6 trillion and ¥660 billion, down from the earlier expectation of ¥15.4 trillion and ¥780 billion, respectively. Profit before taxes is envisioned at ¥860 billion, down from the previous projection of ¥1 trillion. The revised forecast also implies a 6% year-over-year decline.
The company’s R&D expenses for fiscal 2022 are likely to be ¥840 billion, suggesting a rise from ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating almost no change from ¥321.2 billion spent in fiscal 2021. Honda currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.