Honda Motor Set to Report Third-Quarter Results

Honda Motor is preparing to announce its third-quarter results on Thursday. Here are the key details you need to know:

Net Profit Forecast

Analysts expect Honda to report a net profit of 264.64 billion yen ($1.79 billion) for the three months ended December 31, representing an 8.2% increase compared to the same period last year when the net profit was 244.655 billion yen.

Revenue Forecast

Third-quarter revenue is estimated to have grown by 19% to 5.265 trillion yen.

Stock Performance

Honda’s stock has experienced a 15% rise since the beginning of 2024. However, it did face a 13% drop in the October-December period. On Tuesday, shares closed at a price of 1,691 yen.

Things to Watch Out For

• Second-Quarter Operating Profit: Honda’s motorcycle business experienced a 13% decline in operating profit, reaching 109.86 billion yen. This decrease was partly due to weaker sales in Vietnam and India. Investors are eagerly anticipating any signs of recovery in this crucial profit-making segment.

• Annual Guidance: Honda has projected a revenue increase of 18% to 20.000 trillion yen and a net profit climb of 43% to 930.00 billion yen for the year ending in March. Investors will closely monitor any potential adjustments made by the management to the annual guidance.

• Operating Profit Margin: The first-half operating profit margin improved from 5.6% to 7.2% compared to the previous year, mainly driven by growth in car sales in North America. Given the high inflation faced by carmakers worldwide, investors will be paying close attention to margin trends.