Honda (HMC) revealed an impressive earnings performance for the first quarter of fiscal 2025, exceeding the Zacks Consensus Estimate with earnings of $1.57 per share. Despite this achievement, the bottom line experienced a dip from the year-ago figure of $1.60 per share. The quarter’s revenues stood at $34.7 billion, not only surpassing the Zacks Consensus Estimate but also posting growth from the same period last year, which recorded revenues of $33.7 billion.
Segmental Triumphs
In the three-month period ending June 30, 2024, Honda’s Automobile sector saw a significant 14.8% year-over-year revenue increase, reaching ¥3.43 trillion ($22.03 billion). This growth, driven by heightened sales in all major markets excluding Asia, led to an operating profit of ¥222.8 billion ($1.43 billion), surpassing expectations.
The Motorcycle segment witnessed revenues of around ¥937.7 billion ($6 billion), marking a 23.8% year-over-year climb, fueled by increased sales across major end markets except Japan. Operating profit for this unit totaled ¥177.6 billion ($1.14 billion).
Meanwhile, revenues from the Financial Services segment hit ¥938.1 billion ($6.02 billion), up 21.3% year on year. Operating profit for this sector amounted to ¥85 billion ($545.1 million).
In contrast, the Power Product and Other Businesses division experienced a slight decline in revenues at ¥104.9 billion ($673 million) but remained above forecast. The segment reported an operating loss of ¥753 million ($4.83 million), a significant shift from the profit of ¥4.4 billion in the prior year.
Financial Snapshot & Fiscal Projections
As of June 30, 2024, Honda boasted consolidated cash and cash equivalents of ¥4.98 trillion ($30.93 billion). Long-term debt totaled around ¥6.16 trillion ($38.3 billion).
Looking ahead, Honda projects consolidated sales volumes for fiscal 2025 in the Motorcycle, Automobile, and Power Products sectors to amount to 13.06 million units, 2.97 million units, and 3.66 million units, respectively. The company anticipates a 7% growth in Motorcycle and 4% in Automobile unit sales, whereas Power Product unit sales are expected to decrease by 4%.
For the fiscal year 2025, Honda estimates revenues of ¥20.3 trillion, marking a 0.6% year-over-year decline. Operating profit is projected at ¥1.42 trillion, indicating a 2.8% growth compared to the previous year. However, pretax profit is forecasted to decrease by 9.9% year over year to ¥1.48 trillion. The company also plans to distribute an interim and year-end dividend of ¥34 per share for fiscal 2025.
Comparative Quarterly Reports
In a similar vein, other legacy automakers like General Motors (GM), Ford (F), and Toyota (TM) have released their second-quarter and first-quarter results, painting a mixed picture of the industry.