The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 3M beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins dropped, operating margins grew, net margins contracted.
3M reported revenue of $7.39 billion. The 10 analysts polled by S&P Capital IQ predicted sales of $7.18 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $7.09 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 $1.41. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.41 per share. GAAP EPS of $1.41 for Q4 were 4.4% higher than the prior-year quarter's $1.35 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 46.0%, 10 basis points worse than the prior-year quarter. Operating margin was 19.5%, 30 basis points better than the prior-year quarter. Net margin was 13.4%, 10 basis points worse 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 $1.67.
Next year's average estimate for revenue is $31.33 billion. The average EPS estimate is $6.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,434 members out of 4,583 rating the stock outperform, and 149 members rating it underperform. Among 1,399 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,381 give 3M a green thumbs-up, and 18 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 $99.12.
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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 recommends 3M and recommends the following options:Long Jan 2014 $65 Calls on 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.