Honda Q3 Earnings Top Expectations, Revenues Decline Y/Y

Honda HMC reported earnings of 76 cents per share for the third quarter of fiscal 2026, topping the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of $1.31 per share. Quarterly revenues totaled $34.7 billion, which fell from the year-ago period’s figure of $36.3 billion.Honda Motor Co., Ltd. Price, Consensus and EPS Surprise Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. QuoteSegmental HighlightsFor the three-month period, which ended on Dec. 31, 2025, revenues from the Automobile segment decreased 8.8% year over year to ¥3.43 trillion ($22.3 billion). The segment registered an operating loss of ¥93.4 billion ($606.3 million) against an operating income of ¥144.6 billion in the corresponding quarter of fiscal 2025. Revenues from the Motorcycle segment came in at around ¥1.01 trillion ($6.58 billion), which increased 13.1% year over year. The unit’s operating profit came in at ¥178.3 billion ($1.15 billion), down 1.3% year over year.Revenues from the Financial Services segment totaled ¥879 billion ($5.7 billion), up 3.5% year over year. The unit’s operating profit totaled ¥74.8 billion ($485 million), down 9.1% year over year.Revenues from Power Product and Other Businesses came in at ¥97.5 billion ($632 million), down 0.6% year over year. The segment’s operating loss widened to ¥6.3 billion (40.9 million) compared with the operating loss of ¥5.4 billion incurred in the same period last year.Financials & FY26 ViewConsolidated cash and cash equivalents were ¥4.85 trillion ($31 billion) as of Dec. 31, 2025. Long-term debt was around ¥8.29 trillion ($53.1 billion) as of Dec. 31, 2025.Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.64 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in the Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 7% and 0.8%, respectively, year over year in fiscal 2026.For fiscal 2026, Honda forecasts revenues of ¥21.1 trillion, implying a decline of 2.7% year over year. Operating profit is envisioned at ¥550 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥620 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2026.HMC’s Zacks Rank & Key PicksHonda carries a Zacks Rank #3 (Hold) at present. Some better-ranked stocks in the auto space are Modine Manufacturing Company MOD, Strattec Security Corporation STRT and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 72 cents, respectively, in the past seven days. The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 85 cents and 48 cents, respectively, in the past seven days. The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 45 cents and 81 cents, respectively, in the past 60 days. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.See Our Newest 5 Stocks Set to Double Picks >>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 Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Modine Manufacturing Company (MOD): Free Stock Analysis Report PHINIA Inc. (PHIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks