Honda HMC has managed to navigate the financial landscape with mixed results. The first-quarter fiscal 2025 earnings of $1.57 per share surpassed the Zacks Consensus Estimate but took a hit from the previous year, dropping from $1.60 per share. Despite this decline, quarterly revenues reached $34.7 billion, exceeding both the Zacks Consensus Estimate and the year-ago figures of $33.7 billion.
Segmental Performance Details
For the three-month period ending June 30, 2024, Honda reported a 14.8% year-over-year increase in revenues from the Automobile segment, hitting ¥3.43 trillion ($22.03 billion). This performance outpaced projections due to increased sales across major markets except Asia. The Automobile segment also marked an operating profit of ¥222.8 billion ($1.43 billion), up 26% from the same quarter in fiscal 2024.
In the Motorcycle segment, revenues amounted to around ¥937.7 billion ($6 billion), a 23.8% rise from the previous year. The unit’s operating profit stood at ¥177.6 billion ($1.14 billion), showing a 24% increase year over year.
Honda’s Financial Services segment saw revenues of ¥938.1 billion ($6.02 billion), climbing 21.3% year-on-year. Despite the growth, the unit’s operating profit of ¥85 billion ($545.1 million) fell short of expectations.
On the other hand, revenues from the Power Product and Other Businesses segment hit ¥104.9 billion ($673 million), a year-over-year decline of 4%. Despite falling revenues, the segment posted an operating loss of ¥753 million, missing projections.
Financial Outlook and Future Projections
Looking ahead to fiscal 2025, Honda anticipates consolidated sales volumes of 13.06 million units, 2.97 million units, and 3.66 million units from the Motorcycle, Automobile, and Power Products segments, respectively. The company projects a 7% and 4% growth year over year in Motorcycles and Automobiles units, with a 4% decline in Power Product Unit sales.
Revenue forecasts for fiscal 2025 are set at ¥20.3 trillion, reflecting a slight decrease of 0.6% year over year. Operating profit is estimated at ¥1.42 trillion, showing a 2.8% increase year over year. However, pretax profit is expected to decrease by 9.9% year over year, reaching ¥1.48 trillion. The company plans to distribute an interim and year-end dividend of ¥34/share each in fiscal 2025.
Comparative Analysis with Other Automakers
General Motors and Ford have also released their second-quarter 2024 results. General Motors reported adjusted earnings of $3.06 per share, surpassing estimates and showing an increase from the previous year. Ford’s adjusted earnings per share stood at 47 cents, missing estimates and declining year over year.
On the other hand, Toyota surpassed earnings estimates but experienced a decline from the previous year. The comparative analysis of these automakers provides a broader perspective on the current market dynamics and individual company performances.