Honda Motor (NYSE:HMC) Issues Earnings Results

Honda Motor (NYSE:HMC) posted its quarterly earnings data on Tuesday. The company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate 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%. 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

Shares of Honda Motor stock traded up $0.14 on Tuesday, reaching $31.90. The company’s stock had a trading volume of 206,968 shares, compared to its average volume of 1,151,537. The company has a quick ratio of 1.13, a current ratio of 1.41 and a debt-to-equity ratio of 0.66. The company has a market capitalization of $49.80 billion, a P/E ratio of 10.44, a PEG ratio of 1.49 and a beta of 0.37. The stock has a 50-day moving average price of $30.33 and a 200-day moving average price of $31.40. Honda Motor has a 52-week low of $24.56 and a 52-week high of $34.89.

Institutional Investors Weigh In On Honda Motor

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd purchased a new position in Honda Motor during the third quarter valued at $26,000. WealthCollab LLC lifted its stake in Honda Motor by 66.2% in the 2nd quarter. WealthCollab LLC now owns 916 shares of the company’s stock valued at $26,000 after buying an additional 365 shares in the last quarter. Newbridge Financial Services Group Inc. purchased a new position in Honda Motor in the 2nd quarter valued at about $29,000. Geneos Wealth Management Inc. boosted its holdings in Honda Motor by 121.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 2,119 shares of the company’s stock worth $57,000 after buying an additional 1,161 shares during the last quarter. Finally, CIBC Private Wealth Group LLC increased its stake in Honda Motor by 29.9% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,677 shares of the company’s stock worth $82,000 after buying an additional 616 shares in the last quarter. Hedge funds and other institutional investors own 5.32% of the company’s stock.

Honda Motor News Summary

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

• Positive Sentiment: Q3 earnings beat — Honda reported EPS of $0.76 vs. the $0.52 consensus, signaling better-than-expected near-term profitability metrics (net margin 3.04%, ROE 5.18%). Earnings Transcript
• Positive Sentiment: Revenue guidance topped estimates — Honda raised FY2026 revenue guidance to about $137.0 billion, above consensus of ~$131.8 billion, which may support sales-driven valuation expectations (despite EPS guidance cuts).
• Positive Sentiment: Strategic partnership — Honda Powersports announced a branding/operations partnership with 6666 Ranch (boots-on-the-ground product placement and events), a modest positive for brand visibility and powersports sales. Honda Powersports & 6666 Ranch Partnership
• Neutral Sentiment: Company materials available — conference call and slide deck for the quarter were published for investors to dig into divisional performance and assumptions. Slide Deck
• Negative Sentiment: Sharp EPS guidance cut — Honda set FY2026 EPS guidance at 1.462, well below the street consensus (~3.38), signaling management expects weaker full-year profitability (major headwind for multiple valuation metrics).
• Negative Sentiment: Big operating-profit decline — Q3 operating profit fell ~61% year-over-year, underscoring margin pressure from tariffs and other cost/headwind items. Reuters: Operating Profit Drop
• Negative Sentiment: Tariffs and EV impairments weighing on results — Coverage highlights that U.S. import tariffs and write-downs of EV assets materially hurt nine-month results and contributed to management’s cautious tone. WSJ: Tariff Impact & EV Write-Downs
• Negative Sentiment: Management warns of tougher year ahead — Analysts and press coverage flagged a more challenging outlook for the coming year given market shifts and the profit decline. Investing News: Tougher Year Ahead

Wall Street Analyst Weigh In

HMC has been the topic of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Honda Motor in a report on Monday, December 29th. Nomura upgraded shares of Honda Motor to a “strong-buy” rating in a research report on Tuesday, December 9th. Finally, Zacks Research upgraded shares of Honda Motor from a “strong sell” rating to a “hold” rating in a research report on Monday, October 20th. One investment analyst has rated the stock with a Strong Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold”.

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.