With operations spread across 70 countries worldwide, diversified technology firm 3M Company (MMM - Free Report) offers dynamic growth opportunities in a broad range of sectors with its flexible product lines. Over the years, 3M has initiated some prudent steps to focus on its core portfolio of businesses. Since 2012, the company has pruned its businesses from 40 to 26, thereby improving customer relevance, productivity and speed through a leaner operating structure. 3M also aims to continue investing in capital expenditures and research and development to support organic growth.
However, given its international presence, adverse foreign currency translations are likely to affect the company’s ability to realize projected growth rates in its sales and earnings. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report.
3M has a fairly decent earnings surprise history. In the last four trailing quarters, 3M has managed to beat earnings thrice for an average earnings surprise of 1.9%. Currently, 3M has a Zacks Rank #2 (Buy), but that could definitely change following the first-quarter 2017 earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: 3M missed on earnings. The Zacks Consensus Estimate called for EPS of $2.59, and the company reported EPS of $2.58.
Revenues: Revenues missed estimates. 3M posted revenues of $7,810 million, lower than the Zacks Consensus Estimate of $7,879 million.
Key Stats to Note: 3M increased its earlier guidance for 2017 on favourable growth dynamics. Earnings are expected to be within $8.80 to $9.05 per share, up from prior projections of $8.70–$9.05. Organic sales are expected to improve 3–5%, up from 2–5% expected earlier.
Stock Price: Despite bullish guidance, 3M’s shares were down in pre-market trading following the release primarily due to earnings miss. It would be interesting to see how the market reacts to the results during the trading session today.
Check back our full write up on this 3M earnings report later!
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