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MMM Gears Up to Post Q2 Earnings: What Lies Ahead for the Stock?

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Key Takeaways

  • MMM's Safety and Industrial segment likely saw gains from roofing granules and cable accessory demand.
  • The Transportation and Electronics segment is expected to benefit from aerospace strength and project wins.
  • Restructuring efforts may have lowered costs, while FX and consumer weakness could pressure Q2 results.

3M Company (MMM - Free Report) is scheduled to release second-quarter 2025 results on July 18, before market open.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average surprise was 6.6%. In the last reported quarter, its earnings of $1.88 per share beat the consensus estimate of $1.77 by 6.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s see how things have shaped up for 3M this earnings season.

Factors to Note Ahead of MMM’s Q2 Results

In the second quarter of 2025, the Safety and Industrial segment’s results are expected to benefit from strength across roofing granules, industrial adhesives and tapes, and electrical markets. Strong demand for cable accessories, driven by an increase in the construction of data centers and renewable energy projects, is likely to have been a tailwind as well. The Zacks Consensus Estimate for the segment’s revenues is pegged at $2.78 billion, indicating approximately 1% increase from the year-ago number.

Solid momentum in the transportation and aerospace end markets is expected to have driven the performance of the Transportation and Electronics segment. Strength in the commercial aircraft and defense-related business and project wins in the advanced materials business are also anticipated to have boded well. The consensus mark for the segment’s revenues is pegged at $2.14 billion, in line with the year-ago reported figure.

3M has been undertaking several restructuring actions that include streamlining the geographic footprint, simplifying the supply chain and optimizing manufacturing roles to align with production volumes. These restructuring actions are expected to have lowered operational costs and improved margins in the to-be-reported quarter.

However, weakness in the command and packaging expression businesses is likely to have weighed on 3M’s Consumer segment in the second quarter. Also, softness in the auto OEM business due to low auto build rates in Europe and the US is likely to hurt the company’s results.

Given 3M’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt MMM's overseas business in the quarter.

The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $6.12 billion, indicating a decrease of 2.2% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pegged at $2.01 per share, indicating a 4.2% increase from the year-ago quarter’s number.

3M Company Price and EPS Surprise

3M Company Price and EPS Surprise

3M Company price-eps-surprise | 3M Company Quote

Earnings Whispers

Our proven model predicts an earnings beat for MMM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 

Earnings ESP: MMM has an Earnings ESP of +0.08%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: MMM currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Honeywell International Inc. (HON - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 24.

Honeywell’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.7%.

ITT Inc. (ITT - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2025 results on July 31.

ITT’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.7%.

Crown Holdings, Inc. (CCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 21.

Crown Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.3%.

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