Honda Motor (HMC 28.56, +0.54) has climbed 1.9% after beating first quarter expectations and raising its guidance for the full year.
The Japanese automaker reported above-consensus first quarter earnings of JPY115.04 per share on a 7.0% year-over-year increase in revenue to JPY3.71 trillion, which was also ahead of expectations.
Honda's first quarter was highlighted by the launch of a CBR250RR motorcycle in Japan, the launch of an all-new CR-V in China, and the launch of a new Odyssey and Civic Type R vehicles in North America. Sales in China reached 340,000 units, which was an all-time first quarter record.
Consolidated unit sales of motorcycles increased to 3.245 million from 2.831 million, driving the overall sales growth. Consolidated automobile sales declined modestly, slipping to 900,000 from 908,000 one year ago. Unit sales of power products fell to 1.331 million from 1.488 million.
Operating profit increased 0.9% year-over-year to JPY269.20 billion while operating margin dipped 40 basis points to 7.3%.
Looking ahead, Honda has raised its outlook for the fiscal year, expecting earnings of JPY302.39 per share, up from previous guidance that called for earnings of JPY294.07 per share. Revenue for the full year is expected to hit JPY14.50 trillion after the previous forecast called for revenue of JPY14.20 trillion.