3M Company ( MMM Quick Quote MMM - Free Report) yesterday discussed its sales performance for November 2020. Total sales in the month expanded 8% year over year, driven by strength across segments and geographies served. It is worth noting here that sales grew 3% from the year-ago month in October. Inside the Headlines
As noted, the company’s sales in November totaled $2.9 billion. Organically, monthly sales increased 7% year over year, while divestitures had an adverse impact of 1% on top-line results. The impact of the movements in foreign currencies was a positive 2% on a year-over-year basis.
On a geographical basis, 3M’s sales in the Americas grew 9% year over year or expanded roughly 11% on an organic basis. Notably, local-currency organic sales increased 13% in the United States. Further, Europe, Middle East and Africa’s sales improved 10% year over year or 7% organically. Sales in the Asia Pacific were up 5% from the year-ago month or were flat organically. Notably, organic sales (local currency) in China expanded 13%, while were down 5% in Japan. On a segmental basis, the company’s sales improved 16% year over year in Safety and Industrial, 5% in Health Care, 16% in Consumer, and 3% in Transportation and Electronics. On an organic local-currency basis, sales were up 14% in Safety and Industrial, 15% in Consumer, 7% in Health Care, and 1% in Transportation and Electronics. 3M noted that it generated sales of $5.7 billion in the first two months of the fourth quarter of 2020. The company anticipates the full quarter’s sales to total $8.2-$8.4 billion amid the prevalent uncertainties related to the pandemic. The Zacks Consensus Estimate for 3M’s fourth-quarter revenues is pegged at $8.3 billion, suggesting an increase of 1.7% from the year-ago reported number. Zacks Rank, Price Performance, Earnings Estimate Trend and Peers
With $100.4-billion market capitalization, 3M currently carries a Zacks Rank #2 (Buy). The pandemic-induced demand for respirators, solid product offerings, inorganic actions and shareholder-friendly policies are anticipated to prove beneficial for the company. However, the lingering impacts of the challenges related to the pandemic are still 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 2.1% compared with the industry’s growth of 19.7%.
In the past 60 days, the Zacks Consensus Estimate for the company’s earnings is pegged at $8.61 for 2020 and $9.42 for 2021, reflecting growth of 3.4% and 4.3% from the respective 60-day-ago figures. Also, the consensus estimate for the fourth quarter has been raised by 0.9% to $2.25.
The company competes with other players in the same industry or same line of businesses including
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