3M Increases Sales but Misses Estimates on Earnings

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3M (NYS: MMM) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), 3M missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew slightly.


Gross margins were steady, operating margins shrank, net margins dropped.

Revenue details
3M tallied revenue of $7.63 billion. The 11 analysts polled by S&P Capital IQ predicted a top line of $7.81 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.61. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.65 per share. GAAP EPS of $1.61 for Q1 were 1.3% higher than the prior-year quarter's $1.59 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 48.0%, much about the same as the prior-year quarter. Operating margin was 21.6%, 20 basis points worse than the prior-year quarter. Net margin was 14.8%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $7.92 billion. On the bottom line, the average EPS estimate is $1.75.

Next year's average estimate for revenue is $31.35 billion. The average EPS estimate is $6.78.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,430 members out of 4,582 rating the stock outperform, and 152 members rating it underperform. Among 1,392 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,374 give 3M a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 3M is outperform, with an average price target of $108.82.

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The article 3M Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends 3M and recommends the following options:Long Jan 2014 $65 Calls on 3M. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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