MZDAF - Mazda Motor: Q4 May Reflect Earthquake Issues But Also Benefits Of A Still-Cheap Yen
2024-05-05 01:51:00 ET
Summary
- Mazda's Q3 earnings have shown significant volume growth and market share gains, leading to double operating profits.
- While China sales have begun a rebound, Australia is showing signs of peaking, and there may be potential challenges eventually in other markets as well on macro worries.
- The Yen continued to weaken since the Q3 earnings, which will be good for the FY and Q4 results, but there are also potential earthquake procurement inflation effects.
- We think an earnings beat is possible, which may be a reason to pick Mazda up, but the languishing price despite the trailing valuation may mean things are baked in.