Honda Motor Increases Sales but Misses Revenue Estimate

Honda Motor (NYS: HMC) reported earnings on Oct. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Honda Motor missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins expanded, net margins expanded.

Revenue details
Honda Motor booked revenue of $29.16 billion. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $31.13 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $24.46 billion.

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

EPS details
EPS came in at $0.59. The two earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. GAAP EPS of $0.59 for Q2 were 37% higher than the prior-year quarter's $0.43 per share.

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

Margin details
For the quarter, gross margin was 25.0%, 50 basis points worse than the prior-year quarter. Operating margin was 4.4%, 160 basis points better than the prior-year quarter. Net margin was 3.6%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $30.53 billion. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $125.09 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 1,722 members out of 1,814 rating the stock outperform, and 92 members rating it underperform. Among 455 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 438 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 $46.01.

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The article Honda Motor Increases Sales but Misses Revenue Estimate 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. TMFDisclosureHere

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