Honda Reports Declining Profits Amid Weak Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy HMC?
Source: NASDAQ.COM
- Significant Profit Decline: Honda reported a profit of 465.44 billion yen for the first nine months ending March 31, down 42.2% from 805.26 billion yen last year, indicating severe impacts from weak sales revenue.
- Earnings Per Share Drop: The earnings per share fell to 115.53 yen, compared to 169.69 yen last year, reflecting a notable decrease in the company's profitability.
- Operating Profit Plummets: Operating profit dropped 48.1% to 591.51 billion yen from last year's 1.14 trillion yen, highlighting pressures on cost control and market competition.
- Sales Revenue Forecast Adjustment: While maintaining its full-year profit outlook, Honda raised its sales revenue forecast to 21.10 trillion yen from the previous 20.70 trillion yen, indicating cautious optimism about future market conditions.
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Analyst Views on HMC
About HMC
Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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