The chart below shows how HMC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HMC sees a -0.65% change in stock price 10 days leading up to the earnings, and a +2.50% change 10 days following the report. On the earnings day itself, the stock moves by +0.54%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Operating Profit Increase: Operating profit of the first half of FY’2025 was 742.6 billion yen with an operating profit margin at 6.2%, reflecting an increase of 46 billion yen year on year.
Global Motorcycle Sales Surge: Cumulative motorcycle unit sales reached 10 million units globally in the first half of FY’2025, demonstrating strong demand despite regional challenges.
Stable Cash Generation: Operating cash flow after R&D adjustment was 1.2851 trillion yen, maintaining the same level as last year, indicating stable cash generation capabilities.
Dividend Consistency: The interim dividend was set at 34 yen per share, with an annual dividend forecast of 68 yen, consistent with the previous year, showcasing commitment to shareholder returns.
Share Buyback Announcement: A share buyback program was announced with an upper limit of 100 billion yen, in addition to the previously decided 300 billion yen, reflecting confidence in the company's financial health.
Negative
Decline in Unit Sales: Total units sales across the group declined by 155,000 units due to the reduction of the unit in China.
Equity Method Loss: Investment profit and loss based on the equity method was a negative 20.7 billion yen, down by 87.4 billion yen year on year.
Profit Decline Analysis: The profit attributable to the owners of the parents for the interim period was 494.6 billion yen, down by 121.6 billion yen.
Profit Decline Analysis: Profit before income taxes declined by 137.3 billion yen due to a decline in unit sales in China and decrease in equity method profit.
Operating Profit Forecast Stable: Operating profit forecast remains unchanged at 1.42 trillion yen, but profit attributable to the owners of the parent for the year will be down by 50 billion yen to 950 billion yen.
Honda Motor Co., Ltd. (HMC) Q3 2024 Earnings Call Transcript
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