Honda Motor’s First-Quarter Net Profit Beat Analysts’ Expectations — Earnings Review

By Kosaku Narioka

Honda Motor reported its first-quarter results on Wednesday. Here’s what you need to know.
NET PROFIT: Honda said net profit more than doubled to 363.07 billion yen ($2.53 billion) for the quarter ended June 30 from Y149.22 billion a year earlier. That beat the estimate of Y232.44 billion from a poll of analysts by Quick.

REVENUE: First-quarter revenue increased 21% from a year earlier to Y4.625 trillion, exceeding the estimate of Y4.422 trillion in the Quick poll.
WHAT WE WATCHED:
–STOCK SPLIT: Honda said it would split one share into three, effective Oct. 1, in a bid to broaden the investor base by lowering the minimum amount of money required to invest in the stock.
–CARS: Operating profit for its car business more than quadrupled to Y176.98 billion from Y38.26 billion a year earlier thanks to improved sales in North America. The shortage of semiconductors that weighed on production a year earlier has eased, the company said. Sales volume in China dropped due to increased competition as the market for electric vehicles grew.
–MOTORCYCLES: Operating profit from its motorcycle business increased 47% from a year earlier to Y143.52 billion due partly to sales growth in Indonesia and Thailand. Sales volume fell in India and Vietnam.
Write to Kosaku Narioka at [email protected]