3M Beats Analyst Estimates on EPS
3M (NYS: MMM) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 3M met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share improved.
Margins dropped across the board.
3M logged revenue of $7.09 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $7.09 billion. Sales were 5.7% higher than the prior-year quarter's $6.71 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.35. The 17 earnings estimates compiled by S&P Capital IQ forecast $1.31 per share. GAAP EPS of $1.35 for Q4 were 6.3% higher than the prior-year quarter's $1.27 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 46.1%, 60 basis points worse than the prior-year quarter. Operating margin was 19.2%, 20 basis points worse than the prior-year quarter. Net margin was 13.5%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.46 billion. On the bottom line, the average EPS estimate is $1.48.
Next year's average estimate for revenue is $30.59 billion. The average EPS estimate is $6.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,341 members out of 4,479 rating the stock outperform, and 139 members rating it underperform. Among 1,371 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,354 give 3M a green thumbs-up, and 17 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 $90.89.
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At the time this article was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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