Honda Motor (NYSE:HMC) Releases Earnings Results, Misses Estimates By $0.63 EPS

Honda Motor (NYSE:HMC) issued its quarterly earnings data on Tuesday. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.95 by ($0.63), Zacks reports. The business had revenue of $39.13 billion for the quarter, compared to analyst estimates of $36.68 billion. Honda Motor had a negative return on equity of 1.30% and a negative net margin of 0.73%.

Here are the key takeaways from Honda Motor’s conference call:

• Honda raised its full-year operating profit forecast by ¥130 billion to ¥780 billion, with adjusted operating profit projected at ¥1.3 trillion. First-half adjusted operating profit was ¥1.134 trillion, though management cautioned that the second half will be tougher and some first-half gains were one-time items.
• Motorcycle sales reached a first-half record, led by India and Brazil, while auto sales fell, primarily because of weakness in China. Honda cited strong North American demand for hybrids and compact, fuel-efficient cars.
• Honda recorded ¥484.8 billion in EV-related losses for the first half and expects about ¥520 billion for the full year as it continues discussions with suppliers. Rising raw-material costs and geopolitical uncertainty are also weighing on the outlook.
• Honda plans a new Ohio auto plant focused mainly on larger hybrids and aims to raise North American production capacity to 1.91 million vehicles by 2029; the facility is designed to adapt to future EV production. It also plans to expand motorcycle capacity in Brazil from 1.6 million to 2.3 million units.
• The annual dividend forecast remains unchanged at ¥70 per share, with Honda citing a 3% dividend-on-equity benchmark while aiming for stable, continuous dividends.

Honda Motor Stock Performance

Shares of HMC traded down $1.53 during trading hours on Wednesday, reaching $33.34. 905,738 shares of the company’s stock traded hands, compared to its average volume of 1,402,091. The firm has a market capitalization of $52.05 billion, a price-to-earnings ratio of -47.64 and a beta of 0.48. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.29 and a quick ratio of 1.04. The business’s fifty day simple moving average is $33.11 and its two-hundred day simple moving average is $29.09. Honda Motor has a twelve month low of $23.25 and a twelve month high of $36.88.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on HMC. Wall Street Zen raised Honda Motor from a “hold” rating to a “buy” rating in a research report on Saturday, September 19th. Weiss Ratings upgraded Honda Motor from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, October 22nd. Zacks Research raised shares of Honda Motor from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 17th. Finally, BNP Paribas Exane started coverage on shares of Honda Motor in a research report on Friday, September 18th. They set a “neutral” rating and a $34.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $34.00.

Key Headlines Impacting Honda Motor

Here are a few of the latest headlines about HMC:

• Positive Sentiment: Honda raised its FY2027 outlook, citing solid North American demand and a weaker yen that supported overseas earnings. Its revenue guidance of $153.3 billion is above the $148.1 billion consensus, although its EPS guidance is not. Honda Raises Guidance After First-Half Profit Growth
• Positive Sentiment: Honda plans a $3 billion Ohio facility to expand hybrid production and lift U.S. vehicle capacity to about 1.3 million annually. The investment may support longer-term production growth, though the plant is expected to start production in 2029. Honda’s $3B Ohio Plant to Boost U.S. Vehicle Production Capacity
• Negative Sentiment: Quarterly EPS of $0.32 missed the $0.95 consensus. Revenue rose to $39.13 billion and exceeded estimates, but higher costs weighed on profitability; separate reporting also showed lower operating profit and net income year over year. Honda Motor Releases Q2 2027 Earnings

Honda Motor Company Profile

Honda Motor Co., Ltd. is a Japan-based manufacturer of automobiles, motorcycles and other mobility products. Its vehicle lineup includes passenger cars, SUVs and electrified models, while its motorcycle business serves consumers and commercial users in markets around the world. The company also makes power equipment, marine engines and other products, and provides financial services that support vehicle and equipment sales. Honda’s aviation subsidiary, Honda Aircraft Company, develops and manufactures the HondaJet business aircraft.