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The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by 3.3% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.7%.
Let’s see how things are shaping up for 3M this earnings season.
Impressive performance of the Healthcare segment, owing to strength in the separation and purification business, thanks to strong demand for biopharma filtration solutions for COVID-related vaccines, is likely to have aided 3M’s top line in the third quarter. The improvement in U.S. elective medical procedures and oral care volumes is also expected to have driven the Healthcare segment’s performance.
Pricing actions, restructuring savings and spending discipline are likely to have supported 3M’s margin performance in the to-be-reported quarter.
However, high raw material and logistics costs might have dented 3M’s bottom line in the third quarter. The company expects high raw material and logistics costs to have weighed on its third-quarter performance to the tune of approximately $225 million.
Supply chain disruptions are likely to have weighed on the company’s third-quarter performance. Semiconductor supply-chain constraints on the automotive and consumer electronics end markets are expected to have affected the Transportation and Electronics segment’s performance. The Zacks Consensus Estimate for third-quarter net sales in the Transportation and Electronics segment indicates a 4.4% decline from the year-ago reported number.
The Consumer segment’s performance is likely to have been hurt by supply-chain constraints and reduced manufacturing productivity. The Zacks Consensus Estimate for third-quarter net sales in the Consumer segment suggests an 8.5% decrease from the year-ago reported number.
Weakness in disposable respirator demand is expected to have hampered the Safety and Industrial segment’s performance in the third quarter. The consensus mark for third-quarter net sales in the Safety and Industrial segment hints at an approximate 11% decline from the year-ago reported number.
Given 3M’s substantial international presence, foreign currency-related headwinds are expected to have impacted its top line in the soon-to-be-reported quarter. Weakness in consumer electronics demand also might have impacted the company’s performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for 3M this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: 3M has an Earnings ESP of -0.72% as the Most Accurate Estimate is pegged at $2.59, lower than the Zacks Consensus Estimate of $2.61. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: 3M currently carries a Zacks Rank #3.
Highlights of Q2 Earnings
3M’s second-quarter 2022 adjusted earnings of $2.48 per share surpassed the Zacks Consensus Estimate of $2.41. The bottom line declined year over year. The company’s net sales of $8,702 billion also outperformed the Zacks Consensus Estimate of $8,564.2 million. The top line dipped 2.8% year over year due to a 4-percentage point negative impact from foreign-currency headwinds.
Stocks to Consider
Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3. The company is slated to release third-quarter 2022 results on Oct 25.
Illinois Tool’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters, while missing in one. The average beat was 2.8%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Image: Bigstock
3M (MMM) to Report Q3 Earnings: Will Cost Woes Mar Results?
3M Company (MMM - Free Report) is scheduled to release third-quarter 2022 earnings numbers on Oct 25, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by 3.3% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.7%.
Let’s see how things are shaping up for 3M this earnings season.
3M Company Price and EPS Surprise
3M Company price-eps-surprise | 3M Company Quote
Factors to Note
Impressive performance of the Healthcare segment, owing to strength in the separation and purification business, thanks to strong demand for biopharma filtration solutions for COVID-related vaccines, is likely to have aided 3M’s top line in the third quarter. The improvement in U.S. elective medical procedures and oral care volumes is also expected to have driven the Healthcare segment’s performance.
Pricing actions, restructuring savings and spending discipline are likely to have supported 3M’s margin performance in the to-be-reported quarter.
However, high raw material and logistics costs might have dented 3M’s bottom line in the third quarter. The company expects high raw material and logistics costs to have weighed on its third-quarter performance to the tune of approximately $225 million.
Supply chain disruptions are likely to have weighed on the company’s third-quarter performance. Semiconductor supply-chain constraints on the automotive and consumer electronics end markets are expected to have affected the Transportation and Electronics segment’s performance. The Zacks Consensus Estimate for third-quarter net sales in the Transportation and Electronics segment indicates a 4.4% decline from the year-ago reported number.
The Consumer segment’s performance is likely to have been hurt by supply-chain constraints and reduced manufacturing productivity. The Zacks Consensus Estimate for third-quarter net sales in the Consumer segment suggests an 8.5% decrease from the year-ago reported number.
Weakness in disposable respirator demand is expected to have hampered the Safety and Industrial segment’s performance in the third quarter. The consensus mark for third-quarter net sales in the Safety and Industrial segment hints at an approximate 11% decline from the year-ago reported number.
Given 3M’s substantial international presence, foreign currency-related headwinds are expected to have impacted its top line in the soon-to-be-reported quarter. Weakness in consumer electronics demand also might have impacted the company’s performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for 3M this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: 3M has an Earnings ESP of -0.72% as the Most Accurate Estimate is pegged at $2.59, lower than the Zacks Consensus Estimate of $2.61. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: 3M currently carries a Zacks Rank #3.
Highlights of Q2 Earnings
3M’s second-quarter 2022 adjusted earnings of $2.48 per share surpassed the Zacks Consensus Estimate of $2.41. The bottom line declined year over year. The company’s net sales of $8,702 billion also outperformed the Zacks Consensus Estimate of $8,564.2 million. The top line dipped 2.8% year over year due to a 4-percentage point negative impact from foreign-currency headwinds.
Stocks to Consider
Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3. The company is slated to release third-quarter 2022 results on Oct 25.
Illinois Tool’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters, while missing in one. The average beat was 2.8%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.