3M Co. (NYSE: MMM) reported its first-quarter earnings results before the markets opened on Tuesday. The company posted $2.50 in earnings per share (EPS) on $8.28 billion in revenue, which compares with consensus estimates of $2.52 in EPS on revenue of $8.26 billion. In the same period of last year, 3M said it had EPS of $2.16 and $7.68 billion in revenue.
During the quarter, organic local-currency sales increased 2.8% while acquisitions, net of divestitures, increased sales by 0.7%. Foreign currency translation increased sales by 4.2% year on year.
In terms of its segments, the firm reported as follows:
- Total sales grew 15.0% in Safety and Graphics, with organic local-currency sales increased 6.9%.
- Sales grew 7.1% in Industrial, with organic local-currency sales increased 2.2%.
- Sales increased 7.1% in Health Care, with organic local-currency sales increased 2.7%.
- Total sales grew 5.0% in Consumer, with organic local-currency sales increased 2.1%.
- Sales increased 4.6% in Electronics and Energy, with organic local-currency sales increased 1.7%.
Looking ahead to the 2018 full year, the company now expects to see EPS in the range of $10.20 to $10.55, versus the prior expectation of $10.20 to $10.70 per share. The company also updated its organic local-currency sales growth guidance to be in the range of 3% to 4%, versus a prior range of 3% to 5%. The consensus estimates from Thomson Reuters call for $10.56 in EPS on $33.75 billion in revenue for the year.
Inge G. Thulin, 3M’s board chair, chief executive and president, commented:
Coming off a strong 2017, our team opened the new year with broad-based organic growth of three percent, with positive growth across all business groups. We also continued to invest in our commercialization capabilities, while returning significant cash to our shareholders – including a 16 percent dividend increase. Going forward we will continue to execute the 3M Playbook and leverage the world-class capabilities of our people and our enterprise, and I am confident we will deliver strong results in 2018.
Shares of 3M traded down more than 6% to $202.20 Tuesday morning. The consensus analyst price target is $240.15, and the 52-week range of $192.36 to $259.77.
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