Honda Motor (NYSE:HMC) shares edged up on Wednesday, after the carmaker raised its full-year profit forecast despite posting a steep 50% drop in quarterly earnings.
The company reported operating profit of $1.66 billion for the April–June quarter, falling well short of the $2.12 billion expected by analysts.
The shortfall was largely driven by a stronger yen and a new 27.5% US tariff on auto imports, a combination of an existing 2.5% rate and a 25% levy imposed by the Trump administration, which wiped $847 million from quarterly profit.
Even so, Honda now expects a smaller full-year hit from tariffs, revising its estimate down from $4.4 billion to $3.05 billion.
It also lifted its annual operating profit forecast from $3.39 billion to $4.73 billion, citing a weaker currency outlook.
The shares prove resilient, rising 1.5% to ¥1,572.