Japan's Honda Motor forecast a 59% profit decrease for the current financial year on Tuesday as the impact of U.S. President Donald Trump's tariffs and a stronger yen offset gains from demand for its hybrid lineup.
Tariffs will quickly batter U.S. car sales as some prices rise by $5,000 to $10,000.
Honda on Wednesday issued a return-to-office order for its US-based staff. The internal memo says that employees must work in the office at least 80% of the time by October 6.
Honda (HMC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
HMC refutes reports that state that the automaker plans to shift vehicle production from Canada and Mexico to the United States due to potential heavy tariffs.
Honda is discussing plans to move production of its CR-V and Civic vehicles from Canada and Mexico to the U.S. as the administration tries to boost the American auto industry.
Honda plans to boost its production in the US by up to 30% over the next two-to-three years, the Nikkei reported.
Honda (HMC) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Honda Motor said on Monday that it had accepted the resignation of Executive Vice President Shinji Aoyama which followed an allegation of inappropriate conduct during a social gathering outside of work hours.
Complaints allege the car's engine fails to restart on its own after a complete stop at a traffic light or intersection when the Auto Idle Stop feature is engaged.
The U.S. automobile safety regulator has opened up an investigation into more than 2 million Honda vehicles over reports that the engine can fail to restart from an idle position.