The 10-second takeaway
For the quarter ended March 31 (Q1), 3M missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew slightly.
Gross margins were steady, operating margins shrank, net margins dropped.
3M tallied revenue of $7.63 billion. The 11 analysts polled by S&P Capital IQ predicted a top line of $7.81 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.61. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.65 per share. GAAP EPS of $1.61 for Q1 were 1.3% higher than the prior-year quarter's $1.59 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 48.0%, much about the same as the prior-year quarter. Operating margin was 21.6%, 20 basis points worse than the prior-year quarter. Net margin was 14.8%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.92 billion. On the bottom line, the average EPS estimate is $1.75.
Next year's average estimate for revenue is $31.35 billion. The average EPS estimate is $6.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,430 members out of 4,582 rating the stock outperform, and 152 members rating it underperform. Among 1,392 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,374 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 $108.82.
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 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.