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 (HMC) Gears Up for Q3 Earnings: What Can Investors Expect?
Read MoreHide Full Article
Honda (HMC - Free Report) is slated to release third-quarter fiscal 2022 results on Feb 9. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 86 cents per share on revenues of $30.32 billion.
This Japan auto giant delivered higher-than-anticipated earnings in the last reported quarter.
Over the trailing four quarters, the company surpassed estimates on all occasions, the average surprise being 90.3%. This is depicted in the graph below:
The Zacks Consensus Estimate for Honda’s fiscal third-quarter earnings per share moved down by 9 cents to 86 cents in the past 90 days. Also, this compares unfavorably with the year-ago quarter’s earnings of $1.58, indicating a 45.57% decline year on year. The Zacks Consensus Estimate for the quarterly revenues also suggests a year-over-year fall of 16.04%.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Honda this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as elaborated below.
Earnings ESP: Honda has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Honda currently carries a Zacks Rank of 4 (Sell).
Factors to Note
The auto industry is influenced by a number of strong macroeconomic factors and is highly sensitive to the overall strength of the economy. Currently, the auto sector is battling the global semiconductor supply deficit, forcing automakers to idle production lines worldwide. This is expected to have adversely impacted Honda’s fiscal third-quarter performance.
Evidently, for the quarter in discussion, Honda’s vehicle sales in the Japan market summed 131,049 units, lower than the 150,434 units sold in the prior-year quarter, which is likely to have hurt the automaker’s quarterly results.
For the December-end quarter, Honda’s sales in the United States totaled 287,206 units, shrinking 21.5% from the prior-year quarter. Sales of namesake and Acura brands witnessed a year-over-year drop of 20.9% and 26.3%, respectively, during the quarter in discussion.
Thus, declining vehicle sales in Japan and the United States are likely to have dented Honda’s quarterly performance during the October-December period.
Moreover, the company’s elevated capital expenditure on advanced technologies and alternative fuels to develop electric and autonomous vehicles might have limited its fiscal third-quarter margins.
Stocks With Favorable Combination
Here are a few stocks in the auto sector lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and currently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. Encouragingly, BWA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 30.9%.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 currently. The company is set to announce quarterly figures on Feb 16.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $597.9 million, respectively. ALSN surpassed earnings estimates in three of the preceding four quarters and missed once, delivering an average surprise of 3.9%.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 15.9%.
Image: Bigstock
Honda (HMC) Gears Up for Q3 Earnings: What Can Investors Expect?
Honda (HMC - Free Report) is slated to release third-quarter fiscal 2022 results on Feb 9. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 86 cents per share on revenues of $30.32 billion.
This Japan auto giant delivered higher-than-anticipated earnings in the last reported quarter.
Over the trailing four quarters, the company surpassed estimates on all occasions, the average surprise being 90.3%. This is depicted in the graph below:
Honda Motor Co., Ltd. Price and EPS Surprise
Honda Motor Co., Ltd. price-eps-surprise | Honda Motor Co., Ltd. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Honda’s fiscal third-quarter earnings per share moved down by 9 cents to 86 cents in the past 90 days. Also, this compares unfavorably with the year-ago quarter’s earnings of $1.58, indicating a 45.57% decline year on year. The Zacks Consensus Estimate for the quarterly revenues also suggests a year-over-year fall of 16.04%.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Honda this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as elaborated below.
Earnings ESP: Honda has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Honda currently carries a Zacks Rank of 4 (Sell).
Factors to Note
The auto industry is influenced by a number of strong macroeconomic factors and is highly sensitive to the overall strength of the economy. Currently, the auto sector is battling the global semiconductor supply deficit, forcing automakers to idle production lines worldwide. This is expected to have adversely impacted Honda’s fiscal third-quarter performance.
Evidently, for the quarter in discussion, Honda’s vehicle sales in the Japan market summed 131,049 units, lower than the 150,434 units sold in the prior-year quarter, which is likely to have hurt the automaker’s quarterly results.
For the December-end quarter, Honda’s sales in the United States totaled 287,206 units, shrinking 21.5% from the prior-year quarter. Sales of namesake and Acura brands witnessed a year-over-year drop of 20.9% and 26.3%, respectively, during the quarter in discussion.
Thus, declining vehicle sales in Japan and the United States are likely to have dented Honda’s quarterly performance during the October-December period.
Moreover, the company’s elevated capital expenditure on advanced technologies and alternative fuels to develop electric and autonomous vehicles might have limited its fiscal third-quarter margins.
Stocks With Favorable Combination
Here are a few stocks in the auto sector lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and currently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. Encouragingly, BWA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 30.9%.
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 currently. The company is set to announce quarterly figures on Feb 16.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $597.9 million, respectively. ALSN surpassed earnings estimates in three of the preceding four quarters and missed once, delivering an average surprise of 3.9%.
Genuine Parts (GPC - Free Report) has an Earnings ESP of +0.31% and carries a Zacks Rank #2 at present. It is scheduled to report earnings results on Feb 17.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 15.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.