3M Co. (NYSE: MMM) released its third-quarter earnings report before the markets opened on Tuesday. This company is the number one culprit for the Dow falling in Tuesday’s session. As of Monday’s close, the stock already was down about 25% from its highs.
The company posted $2.58 in earnings per share (EPS) and $8.15 billion in revenue. These compare to consensus estimates from Thomson Reuters of $2.70 in EPS and $8.39 billion in revenue. In the same period of last year, 3M said it had $2.33 in EPS and $8.17 billion in revenue.
Third-quarter sales were almost flat year over year (down 0.2%) with organic local-currency sales up 1.3% while acquisitions, net of divestitures, increased sales by 0.2%. Foreign currency translation decreased sales by 1.7%.
In terms of its segments, the company reported as follows:
- Industrial net sales were flat year over year at $3.02 billion. Organic local-currency sales increased 2.2%, foreign currency translation decreased sales by 2.1%.
- Safety and Graphics net sales increased 7.0% to $1.66 billion. Organic local-currency sales increased 2.2 percent, foreign currency translation decreased sales by 2.2%.
- Health Care net sales fell 2.8% to $1.45 billion. Organic local-currency sales decreased 1.1% and foreign currency translation decreased sales by 1.7%.
- Electronics and Energy net sales fell 4.8% to $1.44 billion. Organic local-currency sales increased 2.3%, foreign currency translation decreased sales by 1.0%.
- Consumer net sales fell 3.4% to $1.24 billion. Organic local-currency sales decreased 2.0% and foreign currency translation decreased sales by 1.4%.
The company also updated its full-year guidance. 3M now expects to see EPS in the range of $9.90 to $10.00, down from the previous range of $10.20 to $10.45. 3M also updated its full-year organic local-currency sales growth guidance to approximately 3%, from 3% to 4%.
Consensus estimates are calling for $10.28 in EPS and $33.16 billion in revenue for the year.
Mike Roman, 3M CEO, commented:
In the third quarter, 3M delivered a double-digit increase in cash flow and earnings-per-share, along with strong margins despite slower growth. We also continued to deploy capital to invest in our future and return cash to our shareholders.
Shares of 3M were last seen down 6% at $189.35, with a consensus analyst price target of $213.56 and a 52-week trading range of $190.57 to $259.77.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
