HMC Earnings Prediction
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 -0.63% change in stock price 10 days leading up to the earnings, and a +2.63% change 10 days following the report. On the earnings day itself, the stock moves by +0.46%. This data can give you a slight idea of what to expect for the next quarter's release.
HMC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
36.30B
-0.53%
0.38%
Gross Margin
21.33%
-2.07%
0.05%
Operating Margin
7.18%
1.84%
50.21%
Net Margin
6.03%
20.12%
188.52%
EPS
0.44
25.71%
214.29%
No Data Available
HMC Earnings Analysis
Honda Motor Co Ltd Corporation (HMC.N) Earnings Conference Call
Positive
Q3 Operating Profit Highlights: Operating profit for Q3 FY 2025 reached 1,139.9 trillion yen, with a solid operating profit margin of 7%.
Global Motorcycle Sales Surge: Motorcycle sales volume remained strong globally, totaling 15.5 million units for the third quarter, with upward revisions for full-year forecasts due to strong demand in markets like India and Brazil.
Operating Profit Stability: Despite a decrease in automobile sales volume, the company maintained its full-year operating profit forecast at 1,420 trillion yen and profit for the year at 950 billion yen.
Share Repurchase Program Initiated: The company has initiated a share repurchase program worth 1.1 trillion yen, with 184.9 billion yen already acquired as of January 31, 2025, indicating confidence in its financial health.
Strong Free Cash Flow: Free cash flows from operations, excluding financial services, were strong at 693.7 billion yen for the first nine months of FY 2025, showcasing robust cash generation capabilities.
Negative
Automobile Sales Decline: Automobile unit sales decreased by 297,000 units year on year, primarily due to a drop in Asia, especially China.
Decline in Profit: Profit for the period attributable to owners of the parent company was 805.2 billion yen, down 64.3 billion yen compared to the previous year.
Equity Investment Loss: Equity method investment profit decreased by 94.5 billion yen, resulting in a loss of 27.2 billion yen.
Operating Profit Decline: Operating profit before income taxes was down by 38.9 billion yen, despite an increase in operating profit, due to a decline in unit sales in China.
Sales Volume Decline: In Japan, sales volume in the third quarter was lower than the same period last year due to fierce competition.
Profit Squeeze Analysis: Incremental labor and subcontractor costs squeezed profit by 54.3 billion yen, while R&D costs increased by 97.5 billion yen, negatively impacting profit.
Foreign Exchange Impact on Profit: Currency effects squeezed profit by 56.3 billion yen, indicating adverse foreign exchange impacts on earnings.
HMC FAQs
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HMC Earning Call Sentiment
Honda Motor Co., Ltd. (NYSE:HMC) Q3 2025 Earnings Call Transcript
HMC.N
-1.22%Positive
The earnings call presents a mixed picture. While there are positive aspects like increased motorcycle sales and share repurchase plans, there are significant concerns such as declining automobile sales, increased R&D costs, and currency impacts. The Q&A section reveals some uncertainties, particularly regarding the Chinese market and EV incentives. Despite optimistic guidance on future models and market strategies, the lack of clarity in management's responses tempers enthusiasm. Given these factors, the overall sentiment is neutral, with no strong catalysts to drive significant stock price movement in either direction.
