Honda Motor (NYSE:HMC) Issues Earnings Results, Misses Expectations By $0.63 EPS

Key Points

• Honda reported quarterly EPS of $0.32, missing consensus by $0.63, while revenue of $39.13 billion exceeded estimates of $36.68 billion.
• The company raised its full-year operating-profit forecast by ¥130 billion to ¥780 billion, supported by solid North American demand and record first-half motorcycle sales; it cautioned that the second half will be more challenging.
• EV-related losses and cost pressures remain significant: Honda recorded ¥484.8 billion in EV losses in the first half and expects about ¥520 billion for the full year, alongside pressure from raw-material costs and geopolitical uncertainty.

Honda Motor (NYSE:HMC - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.63), Zacks reports. Honda Motor had a negative return on equity of 1.30% and a negative net margin of 0.73%. The company had revenue of $39.13 billion during the quarter, compared to the consensus estimate of $36.68 billion.

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 Price Performance

Honda Motor stock traded down $1.53 during midday trading on Wednesday, reaching $33.34. The company had a trading volume of 905,738 shares, compared to its average volume of 1,402,091. The firm's fifty day simple moving average is $33.11 and its 200-day simple moving average is $29.09. 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 company has a market capitalization of $52.05 billion, a P/E ratio of -47.64 and a beta of 0.48. Honda Motor has a 12-month low of $23.25 and a 12-month high of $36.88.

Honda Motor News Roundup

Investors following HMC have been watching these news items:

• 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

Wall Street Analysts Forecast Growth

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

About Honda Motor

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.

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