Honda Shares Jump 7% After 414.3 Billion Yen Operating Loss as Profit Outlook Beats by 38%
Updated
Updated · CNBC · May 15
Honda Shares Jump 7% After 414.3 Billion Yen Operating Loss as Profit Outlook Beats by 38%
5 articles · Updated · CNBC · May 15
Honda shares rose 7.42% to 1,418 yen after the automaker forecast operating and net profit about 38% above consensus, outweighing its first annual operating loss in nearly 70 years.
The company posted a 414.3 billion yen operating loss for the year ended March, versus a 1.2 trillion yen profit a year earlier, hit by EV provisions, Chinese competition and a 346.9 billion yen U.S. tariff impact.
More than $9 billion in EV restructuring costs are tied to Honda's decision to cancel some North America EV launches and development plans as it reworks a struggling battery-vehicle strategy.
Analysts at Citi and Nomura kept buy ratings, arguing the strategy reset could support a fuller recovery by fiscal 2028 even as Honda still faces recall-related reputational damage and intensifying pressure from Chinese EV makers.
Why are investors rewarding Honda for seemingly abandoning the EV race?
With lawsuits over engine defects, can Honda's pivot to hybrids restore trust?