Are Solid 3M Earnings Good Enough?
3M released marginally better-than-expected second quarter financial results before the markets opened on Tuesday.
When 3M Co. (NYSE: MMM) released its second-quarter financial results before the markets opened on Tuesday, the company said that it had $2.59 in earnings per share (EPS) and $8.39 billion in revenue. The consensus estimates had called for $2.58 in EPS and revenue of $8.37 billion. In the same period of last year, 3M said it had EPS of $2.58 on $7.81 billion in revenue.
Looking ahead to the 2018 full year, the company expects to see EPS in the range of $10.20 to $10.45 with organic local-currency sales growth expected to be 3% to 4%. The consensus estimates are $10.34 in EPS and $33.33 billion in revenue for the full year.
In terms of its segments, the company reported as follows for the most recent quarter:
- Industrial sales were $3.1 billion, up 6.8% in U.S. dollars. Organic local-currency sales increased 5.7%.
- Safety and Graphics sales were $1.8 billion, up 15.8% in U.S. dollars. Organic local-currency sales increased 8.5%.
- Health Care sales were $1.5 billion, up 4.9% in U.S. dollars. Organic local-currency sales increased 3.8%.
- Electronics and Energy sales were $1.3 billion, up 3.6% in U.S. dollars. Organic local-currency sales increased 5.2%.
- Consumer sales were $1.2 billion, up 4.6% in U.S. dollars. Organic local-currency sales increased 4.3%.
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Mike Roman, 3M CEO, commented:
3M had a strong quarter, including organic growth of 6 percent that was broad-based across all business groups and geographic areas. Our team delivered record sales and a double-digit increase in earnings per share, while keeping our commitment to investing in our business and returning cash to shareholders.
Shares of 3M were last seen down about 2% at $194.87, with a consensus analyst price target of $211.54 and a 52-week range of $190.57 to $259.77.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
