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Honda (A3/A-) Reports Strong Q3 Results

CONSUMER CYCLICALS
  • Revenues were just ahead of expectations at ¥5.39tn vs ¥5.3tn estimate, +21% YoY. Operating income beat expectations at ¥379.8bn vs ¥373.8bn estimate, +35% YoY.
  • Net debt rose from ¥4.06tn to ¥4.85tn YoY. Leverage moved slightly from 2.5x to 2.54x.
  • FY guidance has been upgraded but falls slightly behind consensus expectations.
  • Equity currently trading ~+1.3%. Credit spreads indicating unchanged.

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