3M maintained its full-year earnings expectation of $7.30 to $7.55 per share, with organic local-currency sales growth of 3% to 6% (about $31.8 billion to $32.72 billion, based on 2013 revenues of $30.87 billion). Foreign currency is expected to reduce sales by approximately 1% for the year, versus a previous expectation of neutral to minus 1%.
The consensus estimates for the second quarter call for EPS of $1.91 on revenues of $8.13 billion. Analysts’ consensus full-year estimates call for EPS of $7.46 on revenues of $32.35 billion.
The company’s CEO said:
Our teams delivered positive organic growth in all business groups and geographic areas, we posted strong margins across the portfolio and we returned a record amount of cash to shareholders. At the same time we increased investments in R&D and commercialization to help secure future growth in the business.
3M’s sales in the quarter grew the most in its health care division, rising 4.8% to $1.4 billion. The industrial division grew revenue 3.1% to $2.8 billion, and the safety and graphics division sales rose 1.7% to $1.4 billion. The consumer division’s sales dropped 0.2% to $1.1 billion, with stationery and office supplies leading the decline.
The slight miss on EPS and the shortfall in revenues likely will weigh on 3M’s share price.
Shares were down about 2.4% in premarket trading Thursday, at $135.63. The current 52-week range is $102.89 to $140.43. Thomson Reuters had a consensus analyst price target of around $141.20 before the report.
ALSO READ: Nine Countries That Hate America Most
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.