Honda Swings To Q1 Operating Profit
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Honda Motor Co swung on Wednesday to a first-quarter operating profit of 243.21 billion yen ($2.23 billion) from a 113.7 billion loss a year ago as car sales recovered from the impact of the COVID-19 pandemic.
Operating profit at Japan’s No.2 carmaker by sales for the three months ended June 30 was double the average profit estimate of 119.2 billion yen based on nine analysts surveyed by Refinitiv.
Honda raised its full-year forecast by 18% and now expects an operating profit of 780 billion yen in the current financial year, having previously forecast in May a 660 billion yen operating profit.
The new forecast is higher than an average forecast of a 764 billion yen operating profit from 19 analysts polled by Refinitiv.
Questions & Answers
Q.What was Honda's operating profit for the first quarter?
What was Honda's operating profit for the first quarter?
Honda reported an operating profit of 243.21 billion yen (£1.77 billion) for the first quarter. This recovery is largely attributed to increased car sales following the impact of the COVID-19 pandemic.
Q.How does this first-quarter profit compare to analysts' expectations?
How does this first-quarter profit compare to analysts' expectations?
The reported profit of 243.21 billion yen is more than double the average analyst estimate. Nine analysts surveyed by Refinitiv had predicted an average profit of 119.2 billion yen.
Q.Has Honda updated its operating profit forecast for the full year?
Has Honda updated its operating profit forecast for the full year?
Yes, Honda increased its full-year operating profit forecast by 18%. The company now anticipates an operating profit of 780 billion yen, up from the 660 billion yen forecast in May.
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