On April 26, Motley Fool Inside Value pick 3M
- Organic revenues rose 7.6% internationally, versus only 2.6% at home.
- EPS from continuing operations rose 14.3%, thanks to share buybacks and a 9.9% jump in continuing operating income.
- Management reiterated 2007 EPS guidance of $5.20 to $5.45, which includes a gain on the sale of the company's pharmaceuticals business of $0.60 to $0.70.
- 3M is oh-so-popular in the Motley Fool CAPS community, sporting a five-star rating. Fellow Inside Value pick Wal-Mart
(NYSE:WMT) , on the other hand, only sports a two-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$5,937.0 |
$5,595.0 |
6.1% |
|
Net Profit* |
$946.0 |
$860.6 |
9.9% |
|
EPS* |
$1.28 |
$1.12 |
14.3% |
|
Diluted Shares |
741.3 |
768.6 |
(3.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
49.1% |
51.4% |
(2.3) |
|
Operating Margin** |
22.2% |
24.5% |
(2.3) |
|
Net Margin** |
15.9% |
15.4% |
0.6 |
**Based on continuing operations.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,286.0 |
$1,296.0 |
76.4% |
|
Accounts Rec. |
$3,444.0 |
$3,105.0 |
10.9% |
|
Inventory |
$2,714.0 |
$2,379.0 |
14.1% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,441.0 |
$1,342.0 |
7.4% |
|
Long-Term Debt |
$1,771.0 |
$1,291.0 |
37.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$580.0 |
$618.0 |
(6.1%) |
|
Capital Expenditures |
$304.0 |
$190.0 |
60.0% |
|
Free Cash Flow |
$276.0 |
$428.0 |
(35.5%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
