Honda HMC reported earnings of $1.31 per share for third-quarter fiscal 2025, beating the Zacks Consensus Estimate of 94 cents. The bottom line also rose from the year-ago profit of $1.06 per share. Quarterly revenues totaled $36.3 billion, surpassing the Zacks Consensus Estimate of $35.3 billion but declined from the year-ago figure of $36.5 billion.

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Honda Motor Co., Ltd. Price, Consensus and EPS Surprise

Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote

Segmental Highlights

For the three-month period, which ended on Dec. 31, 2024, revenues from the Automobile segment declined 0.1% year over year to ¥3.77 trillion ($24.75 billion) due to a significant drop in sales from Asia. However, the metric outpaced our projection of ¥3.26 trillion. The segment registered an operating profit of ¥144.5 billion ($948.8 million), which tanked 9.2% from the corresponding quarter of fiscal 2024 but beat our estimate of ¥131.5 billion.

Revenues from the Motorcycle segment came in at around ¥896.2 billion ($5.88 billion), which increased 14.1% year over year and beat our estimate of ¥779.7 billion amid increased sales across all major end markets except Japan. The unit’s operating profit came in at ¥175.8 billion ($1.15 billion), up 11.2% year over year and higher than our forecast of ¥143.3 billion.

Revenues from the Financial Services segment totaled ¥848.6 billion ($5.57 billion), which rose 4.7% year over year but missed our prediction of ¥887.4 billion. The unit’s operating profit grew 21.3% year over year to ¥82.2 billion ($539.7 million) and exceeded our estimate of ¥81.6 billion.

Revenues from Power Product and Other Businesses came in at ¥98 billion ($660 million), which increased 6.4% year over year and beat our forecast of ¥79.9 billion. The segment reported an operating loss of ¥5.3 billion ($34.8 million) compared with a loss of ¥5.2 million incurred in the year-ago period.

Financials & FY25 View

Consolidated cash and cash equivalents were ¥4.96 trillion ($31.5 billion) as of Dec. 31, 2024. Long-term debt was around ¥6.77 trillion ($42.99 billion) as of Dec. 31, 2024, up from ¥6.06 trillion as of March 31, 2024.

Honda projects fiscal 2025 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 13.74 million units, 2.89 million units and 3.66 million units, respectively. Motorcycle and Automobile unit sales are expected to increase 12.4% and 1%, respectively, year over year. However, Power Product Unit sales are likely to decline 4% in fiscal 2025.

For fiscal 2025, Honda forecasts revenues of ¥21.6 trillion, implying growth of 5.7% year over year. Operating profit is envisioned at ¥1.42 trillion, indicating growth of 2.8% year over year. Pretax profit is forecasted to be ¥1.47 trillion, suggesting a drop of 10.8% year over year. The company will play an interim and year-end dividend of ¥34/share each in fiscal 2025.

HMC’s Zacks Rank & Key Picks

Honda carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Garrett Motion Inc. GTX. While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, GTX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings indicates year-over-year growth of 2.16% and 17.92%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days.

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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report

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