Honda Motor Co., Ltd. Revises Earnings Forecast Upward on Yen Weakness
Honda Motor Co., Ltd. (TSE:7267) has raised its full-year earnings guidance for the fiscal year ending March 2027, citing stronger-than-expected currency tailwinds and improved market conditions.
| Item | Before | After | Change |
|---|---|---|---|
| 売上収益 | JPY 23150.0bn | JPY 24150.0bn | +4.3% |
| Operating Profit | JPY 500.0bn | JPY 650.0bn | +30.0% |
| 税引前利益 | JPY 500.0bn | JPY 660.0bn | +32.0% |
| 当期利益 | JPY 335.0bn | JPY 480.0bn | +43.3% |
| 親会社の所有者に帰属する当期利益 | JPY 260.0bn | JPY 400.0bn | +53.8% |
| 基本的１株当たり当期利益 | JPY 6.68bn | JPY 10.3bn | +53.8% |
The automaker attributed the upward revision primarily to yen depreciation outpacing internal assumptions. During the first quarter of fiscal 2027, the yen traded weaker than forecast, prompting Honda to adjust its full-year foreign exchange assumption from 145 yen per dollar to 155 yen per dollar. The company also cited improved market conditions supporting higher profit expectations across all earnings metrics.
The revision underscores Honda’s exposure to currency fluctuations, with the 53.8% increase in net profit attributable to parent company shareholders driven substantially by forex gains. Revenue is projected to rise 4.3% to JPY 24150.0bn, while operating profit is expected to jump 30.0% to JPY 650.0bn. However, investors should note that earnings forecasts remain subject to risks including further economic shifts and volatile foreign exchange markets. The company will monitor actual results against revised guidance throughout the fiscal year.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.