Honda Q2 Earnings Miss Expectations, Sales Beat and Rise Y/Y

Honda HMC reported earnings of 43 cents per share for second-quarter fiscal 2025, missing the Zacks Consensus Estimate of 86 cents. The bottom line also declined from the year-ago profit of $1.07 per share. Quarterly revenues totaled $36.24 billion, surpassing the Zacks Consensus Estimate of $35.6 billion as well as the year-ago period figure of $34.5 billion.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Honda Motor Co., Ltd. Price, Consensus and EPS Surprise Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. QuoteSegmental Highlights For the three-month period, which ended on Sept. 30, 2024, revenues from the Automobile segment increased 9.4% year over year to ¥3.62 trillion ($24.35 billion) and outpaced our projection of ¥2.87 trillion on the back of higher sales from all major end markets except Asia. The segment registered an operating profit of ¥35.1 billion ($235 million), which  tanked 71.7% from the corresponding quarter of fiscal 2024 and was way below our estimate of ¥109.6 billion.Revenues from the Motorcycle segment came in at around ¥873 billion ($5.8 billion), which increased 7% year over year and beat our estimate of ¥834 billion amid increased sales across all major end markets except Japan. The unit’s operating profit came in at ¥148.2 billion ($995 million), up 35% year over year and higher than our forecast of ¥112.4 billion.Revenues from the Financial Services segment totaled ¥875.1 billion ($5.87 billion), rising 8.8% year on year and surpassing our prediction of ¥857.9 billion. The unit’s operating profit rose 15.2% year over year to ¥77.1 billion ($522 million) and exceeded our estimate of ¥71.6 billion.Revenues from Power Product and Other Businesses came in at ¥98.3 billion ($660 million), down 6.4% year over year. However, revenues beat our forecast of ¥91.5 billion. The segment incurred an operating loss of ¥3.2 billion ($21.5 million) versus a profit of ¥300 million generated in the year-ago period.Financials & FY25 ViewConsolidated cash and cash equivalents were ¥4.29 trillion ($29.97 billion) as of Sept. 30, 2024. Long-term debt was around ¥6.25 trillion ($43.67 billion) as of Sept. 30, 2024, up from ¥6.06 trillion as of March 31, 2024.Honda projects fiscal 2025 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 13.46 million units, 2.94 million units and 3.66 million units, respectively. The forecast implies growth of 7.3% year over year in Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 7.5% and 4% year over year in fiscal 2025.For fiscal 2025, Honda forecasts revenues of ¥21 trillion, implying growth of 2.8% year over year. Operating profit is envisioned at ¥1.42 trillion, indicating growth of 2.8% year over year. Pretax profit is forecast to be ¥1.43 trillion, suggesting a drop of 12.6% year over year. The company will play an interim and year-end dividend of ¥34/share each in fiscal 2025.HMC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quarterly Releases of Other Legacy AutomakersToyota TM posted fiscal second-quarter 2025 earnings of $2.90 per share, which lagged the Zacks Consensus Estimate of $4.39 and declined from the year-ago earnings of $6.54 a share. Consolidated revenues came in at $76.9 billion, which missed the consensus mark of $79.7 billion and declined from $79.1 billion in the year-ago quarter. Toyota had cash and cash equivalents of ¥7.63 trillion ($53.25 billion) as of Sept. 30, 2024. Long-term debt was ¥21.6 trillion ($150.8 billion), up from ¥21.15 trillion as of March 31, 2024.General Motors GM reported third-quarter 2024 adjusted earnings of $2.96 per share, which surpassed the Zacks Consensus Estimate of $2.49. The bottom line also increased from the year-ago quarter’s level of $2.28. Revenues of $48.75 billion beat the Zacks Consensus Estimate of $44.29 billion and increased from $44.13 billion recorded in the year-ago period.General Motors had cash and cash equivalents of $23.7 billion as of Sept 30, 2024. The long-term automotive debt at the end of the quarter was $15.5 billion.Ford F reported third-quarter 2024 adjusted earnings of 49 cents per share, which came in line with the Zacks Consensus Estimate but increased from 39 cents recorded in the year-ago quarter. F’s total automotive revenues came in at around $43.07 billion, surpassing the Zacks Consensus Estimate of $41.2 billion and higher than $41.18 billion generated in the year-ago quarter.Ford had cash and cash equivalents of $23.4 billion as of Sept. 30, 2024. Long-term debt, excluding Ford Credit, totaled $19.07 billion at the end of the third quarter of 2024.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks