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Honda (HMC) Q4 Earnings & Sales Lag Estimates, Decline Y/Y
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Honda (HMC - Free Report) reported earnings of 51 cents per share for fourth-quarter fiscal 2023, missing the Zacks Consensus Estimate of 61 cents. The bottom line also declined from the year-ago profit of 63 cents per share. Quarterly revenues totaled $33,154 million, lagging the Zacks Consensus Estimate of $34,494 million. The top line also inched down from $33,358 million recorded in the year-ago period.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period, which ended on Mar 31, 2023, revenues from the Automobile segment increased 15.8% year over year to ¥2.86 trillion ($21.69 billion). The segment registered an operating loss of ¥70.9 billion ($536 million) as against an operating profit of $47.6 billion in the corresponding quarter of 2022.
Revenues from the Motorcycle segment came in at ¥706.6 billion ($5.34 billion), up 21.1% year over year. The unit’s operating profit came in at ¥112.2 billion ($848 million), up 41.8% year over year.
Revenues from the Financial Services segment totaled ¥693.1 billion ($5.23 billion), down 1.8% year on year. The unit’s operating profit decreased 12.5% year over year to ¥65.4 billion ($495 million).
Revenues from the Power Product and Other Businesses came in at ¥114.6 billion ($866 million), up 6.8% year over year. The segment incurred an operating loss of ¥1.27 billion ($9.6 million), narrower than the loss of ¥2.05 billion generated in the year-ago period.
Financials & FY24 View
Consolidated cash and cash equivalents were ¥3.83 trillion ($28.64 billion) as of Mar 31, 2023. Long-term debt was ¥4.37 trillion ($33.06 billion).
Honda projects sales volumes from Motorcycle, Automobile and Power Products segments to be 19.18 million units, 4.35 million units and 4.75 million units in fiscal 2024, compared with fiscal 2023 levels of 18.75 million units, 3.68 million units and 5.64 million units, respectively.
For fiscal 2024, Honda forecasts revenues of ¥18.2 trillion, indicating an uptick of 7.6% year over year. Operating profit is envisioned at ¥1 trillion, up 19.1% year over year. Pretax profit is forecast at ¥1,185 billion, up 26.3% year over year.
The company’s R&D expenses for fiscal 2024 are likely to be ¥980 billion, suggesting a rise from ¥852 billion spent in fiscal 2023. Capex is envisioned at ¥400 billion, compared with ¥494 billion recorded in fiscal 2023.
For fiscal 2024, Honda expects total annual dividend of ¥150 per share, including an interim and year-end dividend of ¥75 each.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
Ford (F - Free Report) reported adjusted earnings of 63 cents per share for first-quarter 2023, beating the Zacks Consensus Estimate of 40 cents and increasing from 38 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated first-quarter revenues came in at $41,474 million, rising 20.3% year over year.
Adjusted EBIT for 2023 is estimated to be in the range of $9 billion-$11 billion. Adjusted FCF is envisioned at $6 billion. Ford anticipates 2023 EBIT from Ford Blue and Ford Pro to come in at $7 billion and $6 billion, respectively. Meanwhile, Ford Model e is expected to incur a pretax loss of around $3 billion this year.
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Honda (HMC) Q4 Earnings & Sales Lag Estimates, Decline Y/Y
Honda (HMC - Free Report) reported earnings of 51 cents per share for fourth-quarter fiscal 2023, missing the Zacks Consensus Estimate of 61 cents. The bottom line also declined from the year-ago profit of 63 cents per share. Quarterly revenues totaled $33,154 million, lagging the Zacks Consensus Estimate of $34,494 million. The top line also inched down from $33,358 million recorded in the year-ago period.
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, which ended on Mar 31, 2023, revenues from the Automobile segment increased 15.8% year over year to ¥2.86 trillion ($21.69 billion). The segment registered an operating loss of ¥70.9 billion ($536 million) as against an operating profit of $47.6 billion in the corresponding quarter of 2022.
Revenues from the Motorcycle segment came in at ¥706.6 billion ($5.34 billion), up 21.1% year over year. The unit’s operating profit came in at ¥112.2 billion ($848 million), up 41.8% year over year.
Revenues from the Financial Services segment totaled ¥693.1 billion ($5.23 billion), down 1.8% year on year. The unit’s operating profit decreased 12.5% year over year to ¥65.4 billion ($495 million).
Revenues from the Power Product and Other Businesses came in at ¥114.6 billion ($866 million), up 6.8% year over year. The segment incurred an operating loss of ¥1.27 billion ($9.6 million), narrower than the loss of ¥2.05 billion generated in the year-ago period.
Financials & FY24 View
Consolidated cash and cash equivalents were ¥3.83 trillion ($28.64 billion) as of Mar 31, 2023. Long-term debt was ¥4.37 trillion ($33.06 billion).
Honda projects sales volumes from Motorcycle, Automobile and Power Products segments to be 19.18 million units, 4.35 million units and 4.75 million units in fiscal 2024, compared with fiscal 2023 levels of 18.75 million units, 3.68 million units and 5.64 million units, respectively.
For fiscal 2024, Honda forecasts revenues of ¥18.2 trillion, indicating an uptick of 7.6% year over year. Operating profit is envisioned at ¥1 trillion, up 19.1% year over year. Pretax profit is forecast at ¥1,185 billion, up 26.3% year over year.
The company’s R&D expenses for fiscal 2024 are likely to be ¥980 billion, suggesting a rise from ¥852 billion spent in fiscal 2023. Capex is envisioned at ¥400 billion, compared with ¥494 billion recorded in fiscal 2023.
For fiscal 2024, Honda expects total annual dividend of ¥150 per share, including an interim and year-end dividend of ¥75 each.
Honda currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarterly Releases of Other Legacy Automakers
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profits from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded an adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
Ford (F - Free Report) reported adjusted earnings of 63 cents per share for first-quarter 2023, beating the Zacks Consensus Estimate of 40 cents and increasing from 38 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated first-quarter revenues came in at $41,474 million, rising 20.3% year over year.
Adjusted EBIT for 2023 is estimated to be in the range of $9 billion-$11 billion. Adjusted FCF is envisioned at $6 billion. Ford anticipates 2023 EBIT from Ford Blue and Ford Pro to come in at $7 billion and $6 billion, respectively. Meanwhile, Ford Model e is expected to incur a pretax loss of around $3 billion this year.