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What to Expect For 3M Company (MMM) This Earnings Season?
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3M Company (MMM - Free Report) is scheduled to release first-quarter 2020 results on Apr 28, before market open.
The company delivered better-than-expected results in two of the last four quarters, while lagged estimates twice. Earnings surprise for the period was a negative 1.41%, on average. In the last reported quarter, its earnings of $1.95 per share missed the Zacks Consensus Estimate of $2.10.
In the past three months, 3M Company’s shares have decreased 17.9% compared with the industry’s fall of 22.4%.
Let us delve deeper.
Key Factors and Estimates for Q1
The company might have benefitted from efforts to innovate, focus on people and culture, and measures to transform its businesses. Gains from a healthy portfolio, too, might get reflected in the quarter’s results. Worth mentioning here is the divestment of the advanced-ballistic protection business in January. The transaction might have allowed the company to invest its time and money in more relevant businesses.
On the flip side, unfavorable movements in foreign currencies, high tax rates, impacts of 2019 headwinds and high debts might have hurt first-quarter performance.
Additionally, the uncertainties caused by the coronavirus outbreak are likely to get reflected in 3M Company’s first-quarter results. The counter-actions taken to restrict the virus from spreading might have impacted the company’s manufacturing capabilities, selling techniques, supply chain and demand. Its automotive and electronics businesses might have suffered in China.
Beside the adverse impacts of the pandemic, 3M Company is experiencing high demand for its face masks and other respiratory products (especially powered air-purifying respirators). Demand induced by the pandemic will likely have one percentage point positive impact on organic sales.
For the first quarter of 2020, 3M Company expects organic sales of a slight decline to flat with the year-ago reported figure.
The Zack Consensus Estimate for 3M Company’s earnings per share for the first quarter is pegged at $2.02, suggesting a year-over-year decline of 9.4% and sequential growth of 3.6%, respectively. The consensus estimate for revenues of $7,994 million indicates 1.7% year-over-year growth and a 1.4% sequential decline.
Earnings Whispers
Our proven model doesn’t predict an earnings beat for 3M Company 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: 3M Company has an Earnings ESP of -3.46% as the Most Accurate Estimate of $1.95 is below the Zacks Consensus Estimate of $2.02.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
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 post an earnings beat this quarter:
Casella Waste Systems, Inc. (CWST - Free Report) presently has an Earnings ESP of +66.67% and a Zacks Rank #3.
Nordson Corporation (NDSN - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #3 at present.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
What to Expect For 3M Company (MMM) This Earnings Season?
3M Company (MMM - Free Report) is scheduled to release first-quarter 2020 results on Apr 28, before market open.
The company delivered better-than-expected results in two of the last four quarters, while lagged estimates twice. Earnings surprise for the period was a negative 1.41%, on average. In the last reported quarter, its earnings of $1.95 per share missed the Zacks Consensus Estimate of $2.10.
In the past three months, 3M Company’s shares have decreased 17.9% compared with the industry’s fall of 22.4%.
Let us delve deeper.
Key Factors and Estimates for Q1
The company might have benefitted from efforts to innovate, focus on people and culture, and measures to transform its businesses. Gains from a healthy portfolio, too, might get reflected in the quarter’s results. Worth mentioning here is the divestment of the advanced-ballistic protection business in January. The transaction might have allowed the company to invest its time and money in more relevant businesses.
On the flip side, unfavorable movements in foreign currencies, high tax rates, impacts of 2019 headwinds and high debts might have hurt first-quarter performance.
Additionally, the uncertainties caused by the coronavirus outbreak are likely to get reflected in 3M Company’s first-quarter results. The counter-actions taken to restrict the virus from spreading might have impacted the company’s manufacturing capabilities, selling techniques, supply chain and demand. Its automotive and electronics businesses might have suffered in China.
Beside the adverse impacts of the pandemic, 3M Company is experiencing high demand for its face masks and other respiratory products (especially powered air-purifying respirators). Demand induced by the pandemic will likely have one percentage point positive impact on organic sales.
For the first quarter of 2020, 3M Company expects organic sales of a slight decline to flat with the year-ago reported figure.
The Zack Consensus Estimate for 3M Company’s earnings per share for the first quarter is pegged at $2.02, suggesting a year-over-year decline of 9.4% and sequential growth of 3.6%, respectively. The consensus estimate for revenues of $7,994 million indicates 1.7% year-over-year growth and a 1.4% sequential decline.
Earnings Whispers
Our proven model doesn’t predict an earnings beat for 3M Company 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: 3M Company has an Earnings ESP of -3.46% as the Most Accurate Estimate of $1.95 is below the Zacks Consensus Estimate of $2.02.
3M Company Price, Consensus and EPS Surprise
3M Company price-consensus-eps-surprise-chart | 3M Company Quote
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
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 post an earnings beat this quarter:
Ball Corporation presently has an Earnings ESP of +1.56% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casella Waste Systems, Inc. (CWST - Free Report) presently has an Earnings ESP of +66.67% and a Zacks Rank #3.
Nordson Corporation (NDSN - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #3 at present.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>