Honda forecasts 3% surge in full-year profit

Honda Motor Co Ltd (TSE: 7267) on Friday forecast a 3% surge in operating profit for its current fiscal year.

Honda said it expected an increase in full-year operating profit to JPY 1.42 trillion. The latter compares with a median estimate of JPY 1.39 trillion in a LSEG poll of 22 analysts.

In the three months to March 31st, Honda’s operating profit rose more than six times compared to a year ago to JPY 305.6 billion.

That figure easily outpaced a consensus of analyst estimates of JPY 248.3 billion, according to data by LSEG.

The Japanese auto maker reported a 17% YoY increase in sales in the United States to nearly 378,000 vehicles during the three months to March 31st.

On the other hand, sales in another key market, China, shrank over 6% between January and March to nearly 207,000 vehicles.

Stock Performance

The shares of Honda Motor Co Ltd (7267) closed 0.66% (JPY 11.5) lower at JPY 1,736.5 in Tokyo on Friday, as they extended the losses from the previous five market sessions.

The auto maker’s total market cap now stands at JPY 8.374 trillion.

The shares of Honda Motor Co Ltd (7267) went up 45.08% in 2023, compared with a 28.24% gain for the benchmark index, Nikkei 225 (N225).

The Japanese company’s shares have risen 18.45% so far this year.