Honda Motor is set to release its second-quarter results on Thursday. Here are the key details:
Net Profit Forecast
According to a poll of analysts by Quick, Honda Motor is expected to report a 40% increase in net profit, reaching ¥264.46 billion ($1.76 billion) for the three months ended September 30. This is compared to a net profit of ¥189.295 billion in the same period last year.
Revenue Forecast
The Quick poll also estimates that second-quarter revenue will have grown 15% year-on-year to ¥4.883 trillion.
What to Watch For
Motorcycles: In the first quarter, operating profit from Honda’s motorcycle business rose by 47% to ¥143.52 billion compared to the previous year. This growth was driven in part by increased sales in Indonesia and Thailand. Investors will be closely monitoring the performance and strength of this crucial profit-making segment.
Outlook: Honda has projected a 7.6% increase in revenue to ¥18.200 trillion and a 23% climb in net profit to ¥800.00 billion for the fiscal year ending March 2024. Any changes that the management makes to this annual guidance will be of great interest to investors.
Margin: In the first quarter, Honda’s operating-profit margin improved to 8.5% from 5.8% in the prior year, thanks to effective cost control measures and higher car sales in North America. Given the widespread challenge of high inflation faced by automakers globally, investors will be closely monitoring margin trends.