Honda's 20% decline in Q4 net income to ¥176.2 billion ($1.48b) topped analysts' average estimate of ¥141.1b, as sales rose 9% to ¥3.09 trillion. The U.S. market accounts for 70% of Honda's operating profit. During Q1, U.S. sales increased 6.1% to 354,208 units and its market share rose 0.6% to 9.1%, according to a report by Bloomberg. Fiscal year (ending next March) sales in the U.S. are expected to grow 2.9% to 1.84m units. Rival Nissan reports earnings tomorrow and Toyota annnounces results on May 9. Ordinary shares of Honda lost 2% to ¥3,990 ($33.60 ADR equiv. at ¥118.75/$1) ahead of its after hours release. Its ADRs fell 1.7% to $34.18 yesterday and are down 2.4% to $33.35 in pre-market activity on thin volume under 5,000 shares.
Sources: Press release, Bloomberg
Commentary: Auto Retail Earnings Season: Headlines Rarely Tell the True Story • Auto Stocks: Some Speeding Ahead, Some Stalling • Honda: Buying Opportunity Coming Soon
Stocks/ETFs to watch: Honda (NYSE:HMC) [JP: 7267]. Competitors: Toyota (NYSE:TM), Nissan (OTCPK:NSANY), General Motors (NYSE:GM), Ford (NYSE:F), DaimlerChrysler (DCX). ETFs: BLDRS Asia 50 ADR Index (NASDAQ:ADRA), iShares S&P/TOPIX 150 (ITF), iShares MSCI Japan (NYSEARCA:EWJ)
Related: Honda financial results presentation [pdf]
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