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3M (MMM) Sales Rise Y/Y in August, Q3 Projections Impressive

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3M Company (MMM - Free Report) yesterday provided an update on its sales performance in August 2020. The top line grew 2% year over year. Notably, the company recorded a 6% increase in sales in July 2020.

Its shares declined 1.1% yesterday, closing the trading session at $166.57.

Details on Monthly Sales Update

The company’s monthly sales totaled $2.7 billion. Organic sales in August were down 2% year over year and acquisitions/divestitures had a positive impact of 3%. Foreign currency translation too positively impacted monthly sales by 1%.

Further, business days in the month were 21 days, one lower than the year-ago month. This adversely impacted monthly sales by 5% on a year-over-year basis.

On a geographical basis, sales in the Americas increased 4% year over year or flat on an organic (local currency) basis. Notably, local-currency organic sales grew 1% in the United States. Further, Europe, Middle East and Africa’s sales expanded 7% year over year or were flat organically.

Sales in the Asia Pacific were down 2% than the year-ago month or decreased 5% organically. Notably, organic sales (local currency) in China increased 6%, while fell 15% in Japan.

On a segmental basis, sales increased 6% year over year in Safety and Industrial, 3% in Consumer, and 23% in Health Care. However, sales in Transportation and Electronics decreased 11% year over year. On an organic local-currency basis, sales were up 5% in Safety and Industrial, 2% in Consumer, and 6% in Health Care, while decreased 11% in Transportation and Electronics.

For the third quarter of 2020, 3M anticipates revenues of $8.2-$8.3 billion. This projection reflects an improvement from $8 billion revenues generated in the year-ago quarter and $7.2 million reported in the second quarter of 2020. In addition to the guidance, the company mentioned that the pandemic remains concerning for the global economy.

It is slated to report results for the third quarter of 2020 on Oct 27, 2020, before market open.

Zacks Rank, Earnings Estimates, Price Performance and Peers

3M, with a market capitalization of $97 billion, currently carries a Zacks Rank #3 (Hold). The company is poised to gain from cost-saving measures, the pandemic-induced demand for certain products, buyouts and shareholder-friendly policies. However, weakness in end-markets caused by the coronavirus outbreak, high debts and forex woes are concerning.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past three months, 3M’s shares have gained 4.6% compared with the industry’s growth of 7.5%.

In the past 60 days, the Zacks Consensus Estimate for the company’s earnings is pegged at $8.26 for 2020 and $8.80 for 2021, reflecting growth of 2.6% and 1.6% from the respective 60-day-ago figures.

3M Company Price and Consensus


3M Company Price and Consensus

3M Company price-consensus-chart | 3M Company Quote

Three companies from the industry that competes with 3M are Carlisle Companies Incorporated (CSL - Free Report) , Honeywell International Inc. (HON - Free Report) and Danaher Corporation (DHR - Free Report) .

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