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01/11 11:27
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Operating Profit 1,139.9 trillion yen, increased by 63.5 billion yen year on year due to rise in sales unit, despite profit being squeezed by higher incentives.
Operating Profit Margin 7%, unchanged year on year.
Motorcycle Unit Sales 15.5 million units, increased year on year due to strong demand in India and Brazil.
Automobile Unit Sales 2,817,000 units, decreased by 297,000 units year on year due to a drop in Asia, mainly China.
Operating Cash Flow after R&D Adjustment 1,945 trillion yen, remained at the same level year on year.
Profit for the Period Attributable to Owners of the Parent Company 805.2 billion yen, down 64.3 billion yen year on year due to decline in equity method investment profit.
Equity Method Investment Profit Loss of 27.2 billion yen, decreased by 94.5 billion yen year on year due to drop in unit sales in China.
Free Cash Flows 693.7 billion yen during the first nine months, reflecting business performance.
Net Cash 3.789 trillion yen at the end of the quarter, unchanged from previous periods.
Cumulative Acquired Shares 472 billion yen, with 184.9 billion yen acquired as of January 31, 2025.
Motorcycle Sales: Motorcycle unit sales have been revised upward to a record high due to strong global sales, totaling 20.6 million units.
Automobile Sales: Automobile operations are revised downward to 3.75 million units, mainly due to a decline in Japan.
Market Performance in Asia: Sales exceeded the same period last year due to strong demand in India and Brazil combined with economic recovery in Vietnam.
Market Performance in China: Automobile business saw a drop in total sales year on year due to the severe market environment in China.
Operating Profit: Cumulative operating profit increased by 63.5 billion yen year on year, totaling 1,139.9 trillion yen.
Cash Flow: Operating cash flow after R&D adjustment remained at the same level year on year at 1,945 trillion yen.
Share Repurchase: A resolution was made to repurchase 1.1 trillion yen worth of company shares, with 184.9 billion yen acquired as of January 31, 2025.
Automobile Sales Decline: Consolidated unit sales volume for automobiles decreased by 297,000 units year on year, primarily due to a drop in Asia, especially China.
Competitive Pressures in Japan: Sales volume in Japan was lower than the same period last year due to fierce competition.
Equity Method Investment Loss: Equity method investment profit decreased by 94.5 billion yen, resulting in a loss of 27.2 billion yen.
R&D Cost Increase: R&D costs increased by 97.5 billion yen, negatively impacting profit.
Currency Effects: Currency effects squeezed profit by 56.3 billion yen, with an additional negative impact of 100.5 billion yen expected due to currency fluctuations.
Supply Chain Challenges: Incremental labor and subcontractor costs increased, squeezing profit by 54.3 billion yen.
Economic Factors in China: The severe market environment in China contributed to the decline in automobile sales.
Share Repurchase: A resolution was made on December 23rd, 2024 to repurchase 1.1 trillion yen worth of company shares, with 184.9 billion yen acquired as of January 31st, 2025.
Motorcycle Sales Growth: Motorcycle unit sales have been revised upward to a record high due to strong global sales, particularly in India and Brazil.
Operating Profit Forecast: The FY ’25 consolidated financial forecasts are unchanged, maintaining an operating profit of 1,420 trillion yen.
Profit for the Year Forecast: Profit for the year forecast remains at 950 billion yen.
Automobile Sales Forecast: Automobile operations revised downward to 3.75 million units due to a decline in Japan.
Exchange Rate Assumption: Exchange rate assumption is 152 yen against the dollar for the fourth quarter and full year.
Annual Dividend: The forecast for the annual dividend remains at 68 yen unchanged from the previous announcement.
Capital Expenditures: Forecast for capital expenditures, depreciation, and R&D spending was mentioned but not detailed.
Annual Dividend: The forecast for the annual dividend remains at 68 yen unchanged from the previous announcement.
Share Repurchase Program: A resolution was made on December 23rd, 2024, to repurchase 1.1 trillion yen worth of company shares. As of January 31st, 2025, 184.9 billion yen has been acquired. Cumulative FY 2025 total of acquired shares is 472 billion yen.
The earnings call reflects a mixed outlook. Positive aspects include strong motorcycle business performance and a slight dividend increase. However, challenges such as operating losses in the automobile segment, significant EV-related losses, and declining sales in key markets like Asia and China temper the positive sentiment. The market's uncertainty regarding tariffs and unclear management responses further contribute to a neutral sentiment. Given these factors, the stock price is likely to remain stable within the next two weeks, resulting in a neutral prediction.
The earnings report indicates significant challenges: a decline in net profit and operating profit due to various factors, including sales decline in China, increased R&D expenses, and foreign exchange impacts. Despite a dividend increase and share buyback, the postponement of electrification strategies and unclear management responses in the Q&A add to the negative sentiment. The market may react negatively to these uncertainties and the lack of strong positive catalysts, leading to a potential stock price decline in the short term.
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.
The earnings call summary indicates several negative factors: profit decline from domestic affiliates, negative equity method profit, and reduced unit sales in China. Despite increased operating profit, the overall sentiment is negative due to high warranty costs, forex fluctuations, and unclear management responses. The Q&A section highlights concerns about EV incentives and collaboration with Nissan and Mitsubishi. The dividend and share buyback plans provide some positive sentiment, but the overall impact is likely negative due to significant financial challenges and uncertainties.
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