Trump's Tariffs Are Hammering This Japanese Auto Giant: Growth Score Plunges

MAZDA MOTOR CORP +1.98% Pre

MAZDA MOTOR CORP

MZDAY

3.61

3.61

+1.98%

0.00% Pre

President Donald Trump’s tariffs are continuing to weigh on this Japanese automotive giant, which noted billions in potential headwinds during its latest quarterly results.

The company in question is Mazda Motor Corp. (OTC:MZDAY), based in Hiroshima, which is involved in making passenger cars, trucks and mini-vehicles, along with other ancillary products.

The North American region is currently Mazda’s largest market in terms of volume, making it vulnerable to trade and tariff policies.

Growth Score Plunges Amid Tariffs

The Growth score in Benzinga’s Edge Stock Rankings is calculated based on a company’s historic growth profile, taking into consideration its pace of earnings and revenue growth, across both the short and long terms, before being ranked as a percentile relative to all other stocks.

See Also: Tesla Chinese Rival Lays Off Dozens Of Employees Following Mega MPV Recall, Days Ahead Of Q3 Earnings Call: Report

A steep fall in the Growth score is often indicative of underperformance during a recent earnings update, impacting a company’s long-term growth figures.

Mazda Motor Corp.

Shares of Mazda have seen their Growth metrics drop from 90.49 to 50.37 within the span of a week, following its fiscal second-quarter results earlier this month, when it reported steep year-over-year declines in sales and profits, which it attributes to the tariffs.

While the tariffs have been reduced, ahead of the U.S. trade deal with Japan, the company suffered an operating loss during the quarter, nonetheless, and hopes for a turnaround during the second half of this year.

The stock is flat year-to-date, but is down 4.19% over the past month, following its disappointing earnings performance. Click here for deeper insights into the stock, its peers and competitors.

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Photo courtesy: Chatchai Somwat / Shutterstock.com

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