3M Posts Better-Than-Expected Q3 Results, Updates Guidance
3M (MMM) delivered upbeat third-quarter results characterized by broad-based organic growth and strong margins and cash flow. Revenue and earnings came in above consensus estimates as the company benefited from strong end-market demand for its products. MMM shares fell 0.13% to close at $182.16 on October 27.
3M is a U.S. company that develops, manufactures, and sells various industrial, safety, and consumer products worldwide. It also deals in electronics and medical and surgical supplies.
Sales in the quarter were up 7.1% year-over-year to $8.9 billion, topping consensus estimates of $8.67 billion. The increase came as 3M navigated supply chain disruptions and maintained a relentless focus on serving customers. (See Top Smart Score Stocks on TipRanks)
Operating income in the quarter totaled $1.8 billion, and EPS was flat year-over-year at $2.45, but above consensus estimates of $2.20. Operating cash flow came in at $1.9 billion and adjusted free cash flow totaled $1.5 billion. Focus now shifts to investing in high-demand areas while improving operational performance and driving productivity.
During the quarter 3M returned $1.4 billion to shareholders, with $527 million in stock buybacks and $856 million in dividends.
3M also updated its full-year 2021 sales and earnings guidance. The company is projecting sales growth of between 9% and 10% compared to previous guidance of 7% to 10%. Earnings per share are expected to range between $9.70 and $9.90 compared to previous guidance of between $9.70 and $10.10.
Recently, Langenberg & Co. analyst Brian Langenberg upgraded the stock to a Buy from a Hold.
Consensus among analysts is a Hold based on 2 Buys, 6 Holds, and 4 Sells. The average 3M price target of $197.09 implies 8.20% upside potential to current levels.
Advanced Micro Devices’ Q3 Results Beat, Q4 Forecasts Top Estimates
West Fraser to Buy Georgia’s Pacific OSB Mill
Analysts Bullish on Crown Holdings After Strong Q3 Results