NEW YORK (TheStreet) -- Honda Motor (HMC) - Get Report shares are up 8.26% to $34.26 in early market trading on Friday following the release of the automotive company's second quarter earnings results before the opening bell today.
The Japanese auto company reported second quarter net income of $1.5 billion, a 20% increase over the previous year, or 84 cents per diluted share, on revenue that rose 24% year over year to $29.9 billion.
Analysts on average were expecting the company to report earnings of 68 cents per share on revenue of $27.3 billion.
For the year the company issued earnings guidance of $2.53 per share on revenue of $126 billion.
Analysts are expecting the company to report earnings of $2.78 per share on revenue of $110 billion.
Honda sold 1.147 million vehicles in the quarter, a 5% increase over the same period last year.
The company reported strong quarterly results despite having to recall 24.5 million vehicles this year due to faulty air bags made by Japanese firm Takata.
Takata has had to recall more than 57 million faulty airbags worldwide.
TheStreet Ratings team rates HONDA MOTOR CO LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HONDA MOTOR CO LTD (HMC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."