Honda Motor (NYSE:HMC) Posts Quarterly Earnings Results, Beats Expectations By $0.24 EPS

Honda Motor (NYSE:HMC) issued its earnings results on Tuesday. The company reported $0.76 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.24, Zacks reports. Honda Motor had a return on equity of 5.18% and a net margin of 3.04%.The business had revenue of $34.65 billion during the quarter, compared to analyst estimates of $33.34 billion. Honda Motor updated its FY 2026 guidance to 1.462-1.462 EPS.

Here are the key takeaways from Honda Motor’s conference call:

• Motorcycle operations drove the quarter, delivering record-high unit sales and margins (Q3 motorcycle operating profit ¥446.5bn) and management kept the full-year motorcycle target at 21.3 million units.
• Automobile operations reported an operating loss of ¥166.4bn in Q3, hit by large one‑time EV-related charges (~¥267.1bn), tariff effects (~¥279.5bn) and weaker unit sales from semiconductor disruption.
• Balance-sheet and cash metrics are strong — operating cash flow after R&D ¥1,855.8bn, net cash ¥3,170.7bn and free cash flow ex‑finance ¥917.4bn — the board approved cancellation of 747m treasury shares and kept the full‑year dividend at ¥70/share.
• Honda has recognized ~¥270bn of EV write‑offs YTD and has budgeted up to ¥650–700bn (including R&D); further uncertainty remains due to ongoing negotiations with GM and a planned reassessment of EV product, CapEx and cost strategy.
• Management reduced the estimated tariff impact (now ~¥310bn vs ~¥450bn initially) and uses a ¥148/USD assumption (FX tailwind), but expects intense competition in Asia requiring incentives, so full‑year guidance remains unchanged (operating profit ¥550bn; profit attributable ¥300bn).

Honda Motor Price Performance

HMC opened at $31.73 on Wednesday. Honda Motor has a 1 year low of $24.56 and a 1 year high of $34.89. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.41 and a quick ratio of 1.13. The company has a market capitalization of $49.53 billion, a price-to-earnings ratio of 10.37, a P/E/G ratio of 1.44 and a beta of 0.37. The firm’s fifty day moving average price is $30.37 and its two-hundred day moving average price is $31.39.

Analyst Upgrades and Downgrades

Several research firms have recently commented on HMC. Zacks Research upgraded Honda Motor from a “strong sell” rating to a “hold” rating in a report on Monday, October 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Honda Motor in a research report on Monday, December 29th. Finally, Nomura upgraded shares of Honda Motor to a “strong-buy” rating in a report on Tuesday, December 9th. One research analyst has rated the stock with a Strong Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold”.

Institutional Investors Weigh In On Honda Motor

Several institutional investors and hedge funds have recently added to or reduced their stakes in HMC. Advisory Services Network LLC boosted its stake in shares of Honda Motor by 1.3% in the 2nd quarter. Advisory Services Network LLC now owns 25,183 shares of the company’s stock worth $787,000 after buying an additional 329 shares during the last quarter. WealthCollab LLC increased its position in shares of Honda Motor by 66.2% during the second quarter. WealthCollab LLC now owns 916 shares of the company’s stock valued at $26,000 after acquiring an additional 365 shares during the last quarter. Cerity Partners LLC lifted its holdings in Honda Motor by 0.5% during the second quarter. Cerity Partners LLC now owns 90,498 shares of the company’s stock worth $2,609,000 after acquiring an additional 414 shares during the period. Integrated Wealth Concepts LLC boosted its position in Honda Motor by 5.8% in the first quarter. Integrated Wealth Concepts LLC now owns 8,552 shares of the company’s stock worth $232,000 after purchasing an additional 468 shares during the last quarter. Finally, MML Investors Services LLC grew its stake in Honda Motor by 1.8% in the 2nd quarter. MML Investors Services LLC now owns 28,276 shares of the company’s stock valued at $815,000 after purchasing an additional 507 shares during the period. Hedge funds and other institutional investors own 5.32% of the company’s stock.

Key Headlines Impacting Honda Motor

Here are the key news stories impacting Honda Motor this week:

• Positive Sentiment: Quarterly beat — Honda reported $0.76 EPS vs. $0.52 expected and revenue of $34.65B, topping estimates; these operational beats offer near‑term revenue/earnings credibility. Honda quarterly earnings results and call
• Positive Sentiment: Revenue outlook stronger — Honda set FY‑2026 revenue guidance above consensus (~$137B vs. ~$131.8B), which points to sales resilience even as margins face pressure. PR Newswire: Consolidated financial results
• Neutral Sentiment: Leadership and partnerships — Honda Marine appointed Joshua Matthews as Division Director (organizational continuity) and Honda Powersports announced a brand partnership with 6666 Ranch; these are positive for branding but unlikely to move the stock materially short term. Honda Marine appointment Powersports partnership
• Negative Sentiment: Profit slump and tariff/EV hits — Operating profit fell more than 60% year‑on‑year; management cited U.S. import tariffs and EV‑related impairments as major drags on results. This explains the sharp deterioration in margins and investor concern. Reuters: quarterly operating profit drop
• Negative Sentiment: Weaker EV stance — Honda announced EV‑related write‑downs and lowered its 2030 global EV sales ratio target (reported cut from ~30% to ~20%), signalling slower EV growth and potential long‑term margin pressure in the transition. FastCompany: tariffs and EV impact
• Negative Sentiment: Guidance shock on EPS — Management set FY‑2026 EPS at ~1.462 (single point) vs. consensus ~3.38, a large shortfall that outweighs the revenue beat and is the primary driver of weaker sentiment today.

About Honda Motor

Honda Motor Co, Ltd. is a global manufacturer and mobility company headquartered in Minato, Tokyo, Japan, founded in 1948 by Soichiro Honda and Takeo Fujisawa. The company’s core businesses include the design, manufacture and sale of automobiles and motorcycles, along with a diverse portfolio of power products, engines and related components. Honda also operates in aviation through Honda Aircraft Company and offers financial services that support vehicle sales and leasing.

In automobiles, Honda is known for a range of passenger cars, crossovers and light trucks, and in motorcycles it is one of the world’s leading producers by volume and model breadth.