NEW YORK (TheStreet) -- Honda Motor Co. Ltd. (HMC - Get Report) is recalling 43,000 Acura luxury models in the U.S. in order to fix an issue with the cars' defective seat belts. Reuters reports.

Honda, which develops, produces, and manufacturers a range of automotive products including engines and automobiles, is recalling the 2014 Acura RLX and the 2014-2015 Acura MDX crossover, as extremely low temperatures may cause the front seat belts to become stuck, and not release from the retracted position, Reuters added.

Shares of Honda Motor are lower by 0.57% to $31.52 in late afternoon trading on Monday.

Separately, 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 multiple 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, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HONDA MOTOR CO LTD has improved earnings per share by 15.9% 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 year. We feel that this trend should continue. 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 ($3.26 versus $3.10).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Automobiles industry average. The net income increased by 17.1% when compared to the same quarter one year prior, going from $1,234.74 million to $1,446.60 million.
  • Net operating cash flow has increased to $3,501.89 million or 14.21% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.74%.
  • You can view the full analysis from the report here: HMC Ratings Report

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