NEW YORK (TheStreet) -- Shares of Honda Motor Co., Inc. (HMC - Get Report) are lower in after-hours trading after it was reported that the automaker is expected to recall over 1 million more vehicles with potentially defective air bags, expanding a massive, multi-company air bag recall, sources told Reuters late today.
The Honda recall should be announced by the end of June, sources added.
- The revenue growth came in higher than the industry average of 22.7%. Since the same quarter one year prior, revenues rose by 41.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HONDA MOTOR CO LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HONDA MOTOR CO LTD increased its bottom line by earning $3.10 versus $2.17 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $3.10).
- Net operating cash flow has increased to $3,665.46 million or 41.38% when compared to the same quarter last year. Despite an increase in cash flow, HONDA MOTOR CO LTD's average is still marginally south of the industry average growth rate of 42.70%.
- The gross profit margin for HONDA MOTOR CO LTD is currently lower than what is desirable, coming in at 33.30%. Regardless of HMC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HMC's net profit margin of 5.45% compares favorably to the industry average.
- In its most recent trading session, HMC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: HMC Ratings Report