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Bear Of The Day: 3M Company (MMM)

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3M Company (MMM - Free Report) has slipped to a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day.  The company recently posted earnings and they were not good.  MMM also announced that 2,000 employees would be laid off, and this is the type of thing that can spark a recession.

Description

3M is a diversified technology company which applies science in collaborative ways to improve lives daily. The company's innovation aims to tackle some of the world's most pressing areas of concern: Raw Materials, Water, Energy & Climate, Health & Safety, Education & Development. 3M company conducts operations in Automotive, Commercial Solution, Communications, Consumer, Design & Construction, Electronics, Energy, Energy, Health Care, Manufacturing, Mining, Oil & Gas, Safety and Transportation and other markets. 3M owns substantially all of its physical properties and serves customers worldwide. The Company businesses share technologies, manufacturing operations, marketing channels, and other resources. 3M is headquartered in St. Paul, Minnesota

Recent Earnings

On April 25, the company reported EPS of $2.23, which was $0.27 below the Zacks Consensus Estimate for a negative earnings surprise of 10.8%.  That alone is bad, but it gets worse.

Revenues were $7.86B and below the $8.02B estimate, but of the consensus that made up that estimate, not a single analyst could call that revenue number a strong one.  It was below all of the estimates.

The company also moved to cut 2000 jobs as a result of a slower than expected 2019.  Related to that move, the company will post a pre tax charge of $150M or $0.20 per share.

Guidance

MMM guided Wall Street to FY19 EPS of $9.25 - $9.75, down from $10.45 - $10.90 when the consensus was looking for $10.52.

That number has now slid to $9.85... but could go lower if things get stickier.

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3M Company Price and Consensus

3M Company Price and Consensus | 3M Company Quote

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