By Kosaku Narioka
Honda Motor is scheduled to report its fourth-quarter results on Tuesday. Here's what you need to know:
NET PROFIT FORECAST: Honda is expected to post a 26% drop in net profit to 175.13 billion yen, equivalent to $1.20 billion, for the three months ended March, according to a poll of analysts by LSEG. That would compare with Y237.57 billion in net profit in the year-earlier period.
REVENUE FORECAST: Fourth-quarter revenue is estimated to have declined 1.4% to Y5.355 trillion, according to the LSEG poll.
Honda's stock has fallen 3.0% so far this year due partly to concerns about U.S. tariffs.
WHAT TO WATCH:
--Besides its fourth-quarter results, Honda is expected to offer guidance for the fiscal year that began in April. Investors will be focusing on any projections for sales and profit as well as management's views on U.S. tariffs' impact on its operations.
--The company's operating profit margin deteriorated to 7.0% for the nine months ended December, compared with 7.2% in the year-earlier period. Investors will be paying attention to any signs of improvement in margins, as carmakers globally deal with relatively high inflation.
--Third-quarter operating profit for Honda's motorcycle business increased 11% from a year earlier to Y175.8 billion, helped by sales growth in India and Vietnam. Investors will be closely monitoring the performance of the key profit-generating segment.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
May 12, 2025 05:12 ET (09:12 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.