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3M (MMM) Beats on Q3 Earnings, Narrows 2016 Guidance

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With operations spread across 70 countries worldwide, diversified technology firm 3M Company (MMM - Free Report) offers dynamic growth opportunities in a broad range of sectors with its flexible product lines. Over the years, 3M has initiated some prudent steps to focus on its core portfolio of businesses. Since 2012, the company has pruned its businesses from 40 to 26, thereby improving customer relevance, productivity and speed through a leaner operating structure. 3M also aims to continue investing in capital expenditures and research and development to support organic growth.

However, given its international presence, adverse foreign currency translations are likely to affect the company’s ability to realize projected growth rates in its sales and earnings. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report.

3M has a fairly decent earnings surprise history. In the last four trailing quarters, 3M has managed to beat earnings thrice for an average earnings surprise of 4.97%. Currently, 3M has a Zacks Rank #3 (Hold), but that could definitely change following the third-quarter 2016 earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: 3M beats earnings. The Zacks Consensus Estimate called for EPS of $2.14, and the company reported EPS of $2.15.

3M CO Price and EPS Surprise

 

3M CO Price and EPS Surprise | 3M CO Quote

Revenues: Revenues in line. 3M posted revenues of $7,709 million, matching exactly with the Zacks Consensus Estimate.

Key Stats to Note: 3M continues to take actions to strengthen its portfolio, increase its scientific edge through research and development and transform its business processes through a new global ERP system. 3M narrowed its earnings guidance range for 2016 to $8.15 to $8.20 per share from $8.15 to $8.30 expected earlier.

Stock Price: 3M’s shares fell in pre-market trading at the time of the write-up following the release, as investors probably expected a healthy beat. It would be interesting to see how the market reacts to the results during the trading session today.

Check back our full write up on this 3M earnings report later!

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