What to Expect From 3M Earnings

By Chris Lange Updated Jan 13, 2:37PM EST · Published Jan 25, 12:20PM EST

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What to Expect From 3M Earnings — © Wikimedia Commons

3M Co. (NYSE: MMM) is scheduled to report its fourth-quarter financial results before the markets open Tuesday. The consensus estimates from Thomson Reuters call for $1.63 in earnings per share (EPS) on $7.21 billion in revenue. In the same period from the previous year, the company posted EPS of $1.81 and revenue of $7.72 billion.

This top industrial could really jump with an economic pickup and was listed as one of the top 10 picks for 2016 by Merrill Lynch back in December. 3M is a diversified, global manufacturer. Its businesses are technology-driven and organized under five segments: Consumer, Safety and Graphics, Electronics and Energy, Health Care, and Industrial. Its popular brands include Scotch, Post-It, 3M and Thinsulate. The company also holds over 500 U.S. patents.

The stock was scorched in December when 3M released lowered year-end guidance for 2015, citing weak macroeconomic conditions across the globe. However, it did offer what Merrill Lynch feels is solid 2016 guidance, as the company anticipates GAAP earnings will increase 7% to 12% year over year. Organic local-currency sales growth is expected to be 1% to 3%, while free cash flow conversion rate is anticipated to be 95% to 105%. The analysts feel that the 2016 earnings growth will come in at the high end of the company’s peer group.

A few analysts weighed in on 3M prior to the release of the earnings report:

Citigroup initiated coverage with a Buy rating and a $166 price target.
RBC Capital reiterated a Sell rating.
Sanford Bernstein has a Market Perform rating and a price target of $160.

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So far in 2016, 3M is more or less in line with the broad markets, with the stock down 7.4% year to date. However, over the past 52 weeks the stock is down nearly 14%.

Shares of 3M were trading down 0.5% at $138.76 on Monday, with a consensus analyst price target of $159.73 and a 52-week trading range of $134.00 to $170.50.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.