When 3M Co. (NYSE: MMM) released its second-quarter financial results before the markets opened on Tuesday, the company said that it had $1.78 in earnings per share (EPS) and $7.2 billion in revenue. That compared with consensus estimates of $1.80 in EPS and $7.32 billion in revenue, as well as the $2.13 per share and $8.17 billion posted in the same period of last year.
During the second quarter, end-market demand remained strong in personal safety, home improvement, general cleaning, semiconductor, data center and biopharma filtration. However, second-quarter sales declined 12.2% year over year.
Organic local-currency sales declined 13.1%, while acquisitions, net of divestitures, increased sales by 2.4%. Foreign currency translation reduced sales by 1.5% year over year.
Total sales declined 0.4% in Health Care and 6.2% in Consumer, with declines of 20.9% in Transportation and Electronics and 9.2% in Safety and Industrial. Organic local-currency sales decreased 5.0% in Consumer, 6.1% in Safety and Industrial, 12.4% in Health Care, and 18.9% in Transportation and Electronics.
The company’s operating cash flow was $1.9 billion with adjusted free cash flow of $1.5 billion, contributing to adjusted free cash flow conversion of 149%. 3M paid $846 million in cash dividends to shareholders during the quarter and ended the quarter with $4.22 billion in cash and cash equivalents.
The company previously withdrew its full-year outlook due to the evolving and uncertain impact of the COVID-19 pandemic and it is standing by this. However, management did say that 3M is seeing broad-based sales improvements across businesses and geographies to start the third quarter. With one week left in July, total company sales are currently up low-single digits year-on-year.
Looking ahead, analysts are calling for $8.18 in EPS and $31.05 billion in revenue for the 2020 full year. The 2019 numbers were reportedly $9.08 in EPS and $32.14 billion in revenue.
For the third quarter, consensus estimates are calling for $2.14 in EPS and $7.63 billion in revenue. The same period last year had $2.58 in EPS and $7.99 billion in revenue.
3M stock closed Monday at $163.24, in a 52-week range of $114.04 to $182.55. The consensus price target is $158.80. Following the announcement, the stock was down about 3% at $158.70 in early trading indications Tuesday.
24/7 Wall St.Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
