The 10-second takeaway
For the quarter ended June 30 (Q2), 3M met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share grew.
Margins dropped across the board.
3M reported revenue of $7.75 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $7.77 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 $1.71. The 16 earnings estimates compiled by S&P Capital IQ averaged $1.71 per share. GAAP EPS of $1.71 for Q2 were 3.0% higher than the prior-year quarter's $1.66 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 48.2%, 40 basis points worse than the prior-year quarter. Operating margin was 22.0%, 90 basis points worse than the prior-year quarter. Net margin was 15.4%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.90 billion. On the bottom line, the average EPS estimate is $1.78.
Next year's average estimate for revenue is $31.06 billion. The average EPS estimate is $6.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,433 members out of 4,590 rating the stock outperform, and 157 members rating it underperform. Among 1,367 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,350 give 3M a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 3M is hold, with an average price target of $110.19.
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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 January 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.