- Honda has increased its annual operating income forecast to 700 billion yen, up from the previous expectation of 500 billion yen, though still below the 896.24 billion yen estimate by analysts.
- Projected net sales for the year are set at 21.10 trillion yen, a rise from the prior 20.30 trillion yen, but just shy of the analyst estimate of 21.21 trillion yen.
- Net income is expected to reach 420 billion yen, an improvement over the earlier figure of 250 billion yen but still below the expected 598.6 billion yen.
- The dividend forecast remains at 70 yen, slightly below the analyst estimate of 72 yen.
- For the first quarter, Honda reported an operating income of 244.17 billion yen, missing the analyst estimate of 309.65 billion yen.
- The motorcycle segment performed better than expected with an operating profit of 189.01 billion yen against the 183.45 billion yen forecast.
- Financial services also surpassed expectations, generating an operating profit of 85.01 billion yen, compared to the anticipated 77.29 billion yen.
- The power product and other segments recorded an operating loss of 219 million yen.
- Net income for the first quarter was 196.67 billion yen, which did not meet the expected 218.43 billion yen.
- First-quarter net sales amounted to 5.34 trillion yen, outperforming the anticipated 5.23 trillion yen.
- Revenues for different segments included 951.59 billion yen from motorcycles, 3.47 trillion yen from automobiles, 831.62 billion yen from financial services, and 82.46 billion yen from power products and others.
- Investment ratings for Honda currently feature 11 buy recommendations, 11 holds, and no sells.
“`
A look at Honda Motor Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Honda Motor is positioned well for long-term success. With a top score in both the Value and Dividend categories, Honda Motor is considered a strong investment due to its undervalued nature and attractive dividend payouts. Additionally, scoring high in Growth and Momentum signifies potential for future expansion and positive stock performance.
However, Honda Motor‘s lower score in Resilience highlights a potential area of concern related to its ability to weather economic downturns or market volatility. Investors should consider this aspect when evaluating the company’s overall outlook. In summary, Honda Motor Co., Ltd. is a leading global company in the manufacturing and distribution of motorcycles, automobiles, power products, and financial credit services, with a promising long-term outlook supported by strong Value, Dividend, Growth, and Momentum scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
