The 10-second takeaway
For the quarter ended June 30 (Q1), Honda Motor missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Honda Motor booked revenue of $30.48 billion. The seven analysts polled by S&P Capital IQ predicted net sales of $32.29 billion on the same basis. 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 came in at $0.91. The one earnings estimate compiled by S&P Capital IQ predicted $1.16 per share. 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.
For the 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.
Next quarter's average estimate for revenue is $32.04 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $128.74 billion. The average EPS estimate is $3.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,720 members out of 1,814 rating the stock outperform, and 94 members rating it underperform. Among 441 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 421 give Honda Motor a green thumbs-up, and 20 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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