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3M Gears Up to Report Q4 Earnings: What's in the Offing?
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Key Takeaways
MMM is set to report Q4 results on Jan. 20, with revenues seen up 4.6% and earnings expected to rise 8.3%.
MMM's Safety & Industrial unit is likely to lead growth on solid demand in electrical and industrial markets.
MMM's margin outlook is supported by restructuring actions, despite higher costs and expenses.
3M Company (MMM - Free Report) is scheduled to release fourth-quarter 2025 results on Jan. 20, before market open.
The Zacks Consensus Estimate for MMM’s fourth-quarter revenues is pegged at $6.08 billion, indicating growth of 4.6% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.82 per share, which has edged down 0.5% in the past 60 days. The figure indicates growth of 8.3% from the year-ago quarter's figure.
The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 4.8% on average. In the last reported quarter, its earnings of $2.19 per share beat the consensus estimate of $2.10 by 4.3%.
Let’s see how things have shaped up for 3M this earnings season.
Factors to Note Ahead of MMM’s Q4 Results
3M’s Safety and Industrial segment’s results are anticipated to perform well, driven by strength across personal safety, industrial specialties, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes, along with electronics bonding solutions, is likely to have been a tailwind as well. The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $2.86 billion, indicating approximately a 5.7% increase from the year-ago number.
Growth in demand for MMM’s home care and home improvement products is likely to have been favorable for its Consumer segment. However, persistent weakness in the packaging expression business is likely to have partially offset the strength. Our estimate for revenues from the Consumer segment is pegged at $1.24 billion, indicating an increase of 0.7% year over year.
Solid momentum in the electronics, aerospace and defense, commercial branding and automotive markets is likely to have supported 3M‘s Transportation and Electronics segment’s performance. However, lower sales in the advanced materials business are likely to have weighed on its performance.
Over time, MMM’s performance has been negatively impacted by high costs and expenses. The company’s solid investments in research and development (R&D) are expected to have pushed up its operating expenses.
Nevertheless, 3M has undertaken structural reorganization actions that include streamlining geographic footprint, simplifying the supply chain and optimizing manufacturing operations. These actions are expected to have supported margins in the to-be-reported quarter. For 2025, the company expects adjusted operating margins to increase 180-200 basis points year over year.
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 odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: MMM has an Earnings ESP of -2.91% as the Zacks Consensus Estimate is pegged at $1.82 per share, higher than the Most Accurate Estimate of $1.77. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
Grupo Cibest S.A. (CIB - Free Report) has an Earnings ESP of +8.50% and a Zacks Rank of 1 at present. The company is slated to release fourth-quarter 2025 results on Feb. 19.
Grupo Cibest’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.4%.
Alcoa Corporation (AA - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 1 at present. The company is slated to release fourth-quarter 2025 results on Jan. 22.
Alcoa’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 39.3%.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2025 results on Feb. 17.
Allegion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.9%.
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3M Gears Up to Report Q4 Earnings: What's in the Offing?
Key Takeaways
3M Company (MMM - Free Report) is scheduled to release fourth-quarter 2025 results on Jan. 20, before market open.
The Zacks Consensus Estimate for MMM’s fourth-quarter revenues is pegged at $6.08 billion, indicating growth of 4.6% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.82 per share, which has edged down 0.5% in the past 60 days. The figure indicates growth of 8.3% from the year-ago quarter's figure.
The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 4.8% on average. In the last reported quarter, its earnings of $2.19 per share beat the consensus estimate of $2.10 by 4.3%.
Let’s see how things have shaped up for 3M this earnings season.
Factors to Note Ahead of MMM’s Q4 Results
3M’s Safety and Industrial segment’s results are anticipated to perform well, driven by strength across personal safety, industrial specialties, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes, along with electronics bonding solutions, is likely to have been a tailwind as well. The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $2.86 billion, indicating approximately a 5.7% increase from the year-ago number.
Growth in demand for MMM’s home care and home improvement products is likely to have been favorable for its Consumer segment. However, persistent weakness in the packaging expression business is likely to have partially offset the strength. Our estimate for revenues from the Consumer segment is pegged at $1.24 billion, indicating an increase of 0.7% year over year.
Solid momentum in the electronics, aerospace and defense, commercial branding and automotive markets is likely to have supported 3M‘s Transportation and Electronics segment’s performance. However, lower sales in the advanced materials business are likely to have weighed on its performance.
Over time, MMM’s performance has been negatively impacted by high costs and expenses. The company’s solid investments in research and development (R&D) are expected to have pushed up its operating expenses.
Nevertheless, 3M has undertaken structural reorganization actions that include streamlining geographic footprint, simplifying the supply chain and optimizing manufacturing operations. These actions are expected to have supported margins in the to-be-reported quarter. For 2025, the company expects adjusted operating margins to increase 180-200 basis points year over year.
3M Company Price and EPS Surprise
3M Company price-eps-surprise | 3M Company Quote
Earnings Whispers
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 odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: MMM has an Earnings ESP of -2.91% as the Zacks Consensus Estimate is pegged at $1.82 per share, higher than the Most Accurate Estimate of $1.77. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: 3M presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
Grupo Cibest S.A. (CIB - Free Report) has an Earnings ESP of +8.50% and a Zacks Rank of 1 at present. The company is slated to release fourth-quarter 2025 results on Feb. 19.
Grupo Cibest’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.4%.
Alcoa Corporation (AA - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 1 at present. The company is slated to release fourth-quarter 2025 results on Jan. 22.
Alcoa’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 39.3%.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2025 results on Feb. 17.
Allegion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.9%.