Honda Motor Expected to Post Higher Third-Quarter Net Profit -- Earnings Preview

Dow Jones
12 Feb
 

By Kosaku Narioka

 

Honda Motor is scheduled to report its third-quarter results on Thursday. Here's what you need to know:

 

NET PROFIT: Honda Motor is expected to post a 5.8% rise in net profit to 267.97 billion yen, equivalent to $1.76 billion, for the three months ended Dec. 31, according to a poll of analysts by LSEG. That would compare with Y253.31 billion in net profit in the year-earlier period.

 

REVENUE: Third-quarter revenue is estimated to have declined 0.2% to Y5.379 trillion from a year earlier, according to the LSEG poll.

 

The stock has fallen 7.3% so far in 2025,closing at Y1,423 on Monday, after gaining 4.7% in 2024.

 

WHAT TO WATCH:

--Honda and Nissan said last week that discussions about a potential merger were ongoing, with plans to announce their direction by mid-February. Nissan's board has determined that Honda's proposed terms for the merger are unacceptable, The Wall Street Journal reported last week. Investors will be watching closely for any updates on the merger talks.

--For the fiscal year ending in March, the company has projected a decline of 7.5% in car sales to 3.8 million vehicles, an increase of 2.8% in revenue to Y21.00 trillion, and a drop of 14% in net profit to Y950.00 billion. Investors will be paying attention to any revisions to the annual guidance from management.

--First-half operating profit for the company's motorcycle business rose 29% to Y325.85 billion, driven by stronger sales in India and Vietnam. Investors will be closely monitoring the performance of this key profit-generating segment.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

February 11, 2025 21:55 ET (02:55 GMT)

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