Can Honda Motor Beat These Numbers?

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Honda Motor (NYS: HMC) is expected to report Q2 earnings on Oct. 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Honda Motor's revenues will grow 27.1% and EPS will expand 93.2%.

The average estimate for revenue is $31.10 billion. On the bottom line, the average EPS estimate is $0.85.


Revenue details
Last quarter, Honda Motor logged revenue of $30.48 billion. GAAP reported sales were 43% higher than the prior-year quarter's $21.26 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.94. GAAP EPS of $0.91 for Q1 were 314% higher than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.5%, 170 basis points better than the prior-year quarter. Operating margin was 7.2%, 590 basis points better than the prior-year quarter. Net margin was 5.4%, 350 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $125.61 billion. The average EPS estimate is $3.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,721 members out of 1,813 rating the stock outperform, and 92 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 431 give Honda Motor a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Honda Motor is outperform, with an average price target of $47.38.

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The article Can Honda Motor Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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