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.
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 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.
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.
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.
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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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere