The 10-second takeaway
For the quarter ended March 31 (Q4), Honda missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share shrank. GAAP earnings per share dropped.
Gross margins dropped, operating margins grew, net margins contracted.
Honda reported revenue of $29.14 billion. The nine analysts polled by S&P Capital IQ anticipated revenue of $30.27 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.42. The two earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. Non-GAAP EPS of $0.42 for Q4 were 14% lower than the prior-year quarter's $0.49 per share. GAAP EPS of $0.45 for Q4 were 6.2% lower than the prior-year quarter's $0.48 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 25.3%, 80 basis points worse than the prior-year quarter. Operating margin was 5.2%, 70 basis points better than the prior-year quarter. Net margin was 2.8%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $27.85 billion. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $114.67 billion. The average EPS estimate is $3.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,721 members out of 1,811 rating the stock outperform, and 90 members rating it underperform. Among 499 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 482 give Honda 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 is outperform, with an average price target of $42.83.
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