The 10-second takeaway
For the quarter ended June 30 (Q2), 3M missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share grew.
Margins improved across the board.
3M reported revenue of $7.53 billion. The 10 analysts polled by S&P Capital IQ wanted to see sales of $7.79 billion on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $7.68 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.66. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.65 per share. GAAP EPS of $1.66 for Q2 were 3.7% higher than the prior-year quarter's $1.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.6%, 120 basis points better than the prior-year quarter. Operating margin was 22.9%, 140 basis points better than the prior-year quarter. Net margin was 15.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.79 billion. On the bottom line, the average EPS estimate is $1.66.
Next year's average estimate for revenue is $30.52 billion. The average EPS estimate is $6.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,418 members out of 4,563 rating the stock outperform, and 145 members rating it underperform. Among 1,315 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,293 give 3M a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 3M is outperform, with an average price target of $96.12.
Can your portfolio provide you with enough income to last through retirement? You'll need more than 3M. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add 3M to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 3M. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.